{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/3.2-3300.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/3.2-3300.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/3.2-3300.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/3.2-3300.html"}],"law_id":357535,"edition_id":2,"section_id":357535,"structure_id":51151,"section_number":"3.2-3300","catch_line":"Southern Dairy Compact; form of compact","history":"1998, c. 706, \u00a7 3.1-461.1; 2008, c. 860.","full_text":"The Southern Dairy Compact is enacted into law and entered into with all other jurisdictions legally joining therein in the form substantially as follows:\n\n\t\tARTICLE I. Statement of Purpose, Findings, and Declaration of Policy.\n\n\t\t\u00a7 1. Statement of purpose, findings, and declaration of policy.\n\n\t\tThe purpose of this compact is to recognize the interstate character of the southern dairy industry and the prerogative of the states under the United States Constitution to form an interstate commission for the southern region. The mission of the Commission is to take such steps as are necessary to assure the continued viability of dairy farming in the South, and to assure consumers of an adequate, local supply of pure and wholesome milk.\n\n\t\tThe participating states find and declare that the dairy industry is an essential agricultural activity of the South. Dairy farms, and associated suppliers, marketers, processors, and retailers, are an integral component of the region’s economy. Their ability to provide a stable, local supply of pure, wholesome milk is a matter of great importance to the health and welfare of the region.\n\n\t\tThe participating states further find that dairy farms are essential, and they are an integral part of the region’s rural communities. The farms preserve land for agricultural purposes and provide needed economic stimuli for rural communities.\n\n\t\tBy entering into this compact, the participating states affirm that their ability to regulate the price that southern dairy farmers receive for their product is essential to the public interest. Assurance of a fair and equitable price for dairy farmers ensures their ability to provide milk to the market and the vitality of the southern dairy industry, with all the associated benefits.\n\n\t\tRecent dramatic price fluctuations, with a pronounced downward trend, threaten the viability and stability of the southern dairy region. Historically, individual state regulatory action had been an effective emergency remedy available to farmers confronting a distressed market. The system of federal orders, implemented by the Agricultural Marketing Agreement Act of 1937, establishes only minimum prices paid to producers for raw milk, without preempting the power of states to regulate milk prices above the minimum levels so established.\n\n\t\tIn today’s regional dairy marketplace, cooperative, rather than individual state action is needed to more effectively address the market disarray. Under our constitutional system, properly authorized states acting cooperatively may exercise more power to regulate interstate commerce than they may assert individually without such authority. For this reason, the participating states invoke their authority to act in common agreement, with the consent of Congress, under the compact clause of the Constitution.\n\n\t\tIn establishing their constitutional regulatory authority over the region’s fluid milk market by this compact, the participating states declare their purpose that this compact neither displace the system of federal orders nor encourage the merging of federal orders. Specific provisions of the compact itself set forth this basic principle.\n\n\t\tDesigned as a flexible mechanism able to adjust to changes in a regulated marketplace, the compact also contains a contingency provision should the system of federal orders be discontinued. In that event, the interstate commission may regulate the marketplace in lieu of the system of federal orders. This contingent authority does not anticipate such a change, however, and should not be so construed. It is only provided should developments in the market other than establishment of this compact result in discontinuance of the system of federal orders.\n\n\t\tARTICLE II. Definitions and Rules of Construction.\n\n\t\t\u00a7 2. Definitions.\n\n\t\tFor the purposes of this compact, and of any supplemental or concurring legislation enacted pursuant thereto, except as may be otherwise required by the context:\n\n\t\t“Class I milk” means milk disposed of in fluid form or as a fluid milk product, subject to further definition in accordance with the principles expressed in subsection (b) of \u00a7 3.\n\n\t\t“Commission” means the Southern Dairy Compact Commission established by this compact.\n\n\t\t“Commission marketing order” means regulations adopted by the Commission pursuant to \u00a7\u00a7 9 and 10 of this compact in place of a terminated federal marketing order or state dairy regulation. Such order may apply throughout the region or in any part or parts thereof as defined in the regulations of the Commission. Such order may establish minimum prices for any or all classes of milk.\n\n\t\t“Compact” means this interstate compact.\n\n\t\t“Compact over-order price” means a minimum price required to be paid to producers for Class I milk established by the Commission in regulations adopted pursuant to \u00a7\u00a7 9 and 10 of this compact, which is above the price established in federal marketing orders or by state farm price regulation in the regulated area. Such price may apply throughout the region or in any part or parts thereof as defined in the regulations of the Commission.\n\n\t\t“Milk” means the lacteal secretion of cows and includes all skim, butterfat, or other constituents obtained from separation or any other process. The term is used in its broadest sense and may be further defined by the Commission for regulatory purposes.\n\n\t\t“Partially regulated plant” means a milk plant not located in a regulated area but having Class I distribution within such area. Commission regulations may exempt plants having such distribution or receipts in amounts less than the limits defined therein.\n\n\t\t“Participating state” means a state which has become a party to this compact by the enactment of concurring legislation.\n\n\t\t“Pool plant” means any milk plant located in a regulated area.\n\n\t\t“Region” means the territorial limits of the states which are parties to this compact.\n\n\t\t“Regulated area” means any area within the region governed by and defined in regulations establishing a compact over-order price or commission marketing order.\n\n\t\t“State dairy regulation” means any state regulation of dairy prices and associated assessments, whether by statute, marketing order, or otherwise.\n\n\t\t\u00a7 3. Rules of construction.\n\na\n\nThis compact shall not be construed to displace existing federal milk marketing orders or state dairy regulation in the region but to supplement them. In the event some or all federal orders in the region are discontinued, the compact shall be construed to provide the Commission the option to replace them with one or more commission marketing orders pursuant to this compact.\n\nb\n\nThis compact shall be construed liberally in order to achieve the purposes and intent enunciated in § 1. It is the intent of this compact to establish a basic structure by which the Commission may achieve those purposes through the application, adaptation, and development of the regulatory techniques historically associated with milk marketing and to afford the Commission broad flexibility to devise regulatory mechanisms to achieve the purposes of this compact. In accordance with this intent, the technical terms which are associated with market order regulation and which have acquired commonly understood general meanings are not defined herein but the Commission may further define the terms used in this compact and develop additional concepts and define additional terms as it may find appropriate to achieve its purposes.\n\t\t\tARTICLE III. Commission Established.\n\n\t\t\t§ 4. Commission established.\n\n\t\t\tThere is hereby created a commission to administer the compact, composed of delegations from each state in the region. The Commission shall be known as the Southern Dairy Compact Commission. A delegation shall include not less than three nor more than five persons. Each delegation shall include at least one dairy farmer who is engaged in the production of milk at the time of appointment or reappointment, and one consumer representative. Delegation members shall be residents and voters of, and subject to such confirmation process as is provided for in, the appointing state. Delegation members shall serve no more than three consecutive terms with no single term of more than four years, and be subject to removal for cause. In all other respects, delegation members shall serve in accordance with the laws of the state represented. The compensation, if any, of the members of a state delegation shall be determined and paid by each state, but their expenses shall be paid by the Commission.\n\n\t\t\t§ 5. Voting requirements.\n\n\t\t\tAll actions taken by the Commission, except for the establishment or termination of an over-order price or commission marketing order, and the adoption, amendment, or rescission of the Commission’s bylaws, shall be by majority vote of the delegations present. Each state delegation shall be entitled to one vote in the conduct of the Commission’s affairs. Establishment or termination of an over-order price or commission marketing order shall require at least a two-thirds vote of the delegations present. The establishment of a regulated area that covers all or part of a participating state shall require also the affirmative vote of that state’s delegation. A majority of the delegations from the participating states shall constitute a quorum for the conduct of the Commission’s business.\n\n\t\t\t§ 6. Administration and management.\n\na\n\nThe Commission shall elect annually from among the members of the participating state delegations a chairperson, a vice-chairperson, and a treasurer. The Commission shall appoint an executive director and fix his or her duties and compensation. The executive director shall serve at the pleasure of the Commission, and, together with the treasurer, shall be bonded in an amount determined by the Commission. The Commission may establish through its bylaws an executive committee composed of one member elected by each delegation.\n\nb\n\nThe Commission shall adopt bylaws for the conduct of its business by a two-thirds vote and shall have the power by the same vote to amend and rescind these bylaws. The Commission shall publish its bylaws in convenient form with the appropriate agency or officer in each of the participating states. The bylaws shall provide for appropriate notice to the delegations of all Commission meetings and hearings and of the business to be transacted at such meetings or hearings. Notice also shall be given to other agencies or officers of participating states as provided by the laws of those states.\n\nc\n\nThe Commission shall file an annual report with the Secretary of Agriculture of the United States, and with each of the participating states by submitting copies to the Governor, both houses of the legislature, and the head of the state department having responsibilities for agriculture.\n\nd\n\nIn addition to the powers and duties elsewhere prescribed in this compact, the Commission may engage in all of the following:\n\n1\n\nSue and be sued in any state or federal court.\n\n2\n\nHave a seal and alter the same at pleasure.\n\n3\n\nAcquire, hold, and dispose of real and personal property by gift, purchase, lease, license, or other similar manner, for its corporate purposes.\n\n4\n\nBorrow money and to issue notes, to provide for the rights of the holders thereof, and to pledge the revenue of the Commission as security therefor, subject to the provisions of § 18 of this compact.\n\n5\n\nAppoint such officers, agents, and employees as it may deem necessary, prescribe their powers, duties, and qualifications.\n\n6\n\nCreate and abolish such offices, employments, and positions as it deems necessary for the purposes of the compact and provide for the removal, term, tenure, compensation, fringe benefits, pension, and retirement rights of its officers and employees.\n\n7\n\nRetain personal services on a contract basis.\n\t\t\t\t§ 7. Rule-making power.\n\n\t\t\t\tIn addition to the power to promulgate a compact over-order price or commission marketing orders as provided by this compact, the Commission is further empowered to make and enforce such additional rules and regulations as it deems necessary to implement any provisions of this compact, or to effectuate in any other respect the purposes of this compact.\n\n\t\t\t\tARTICLE IV. Powers of the Commission.\n\n\t\t\t\t§ 8. Powers to promote regulatory uniformity, simplicity, and interstate cooperation.\n\n\t\t\t\tThe Commission may:\n\n1\n\nInvestigate or provide for investigations or research projects designed to review the existing laws and regulations of the participating states, to consider their administration and costs, and to measure their impact on the production and marketing of milk and their effects on the shipment of milk and milk products within the region.\n\n2\n\nStudy and recommend to the participating states joint or cooperative programs for the administration of the dairy marketing laws and regulations and to prepare estimates of cost savings and benefits of such programs.\n\n3\n\nEncourage the harmonious relationships between the various elements in the industry for the solution of their material problems. Conduct symposia or conferences designed to improve industry relations, or a better understanding of problems.\n\n4\n\nPrepare and release periodic reports on activities and results of the Commission’s efforts to the participating states.\n\n5\n\nReview the existing marketing system for milk and milk products and recommend changes in the existing structure for assembly and distribution of milk which may assist, improve, or promote more efficient assembly and distribution of milk.\n\n6\n\nInvestigate costs and charges for producing, hauling, handling, processing, distributing, selling, and for all other services, performed with respect to milk.\n\n7\n\nExamine current economic forces affecting producers, probable trends in production and consumption, the level of dairy farm prices in relation to costs, the financial conditions of dairy farmers, and the need for an emergency order to relieve critical conditions on dairy farms.\n\t\t\t\t§ 9. Equitable farm prices.\n\na\n\nThe powers granted in this section and § 10 shall apply only to the establishment of a compact over-order price, so long as federal milk marketing orders remain in effect in the region. In the event that any or all such orders are terminated, this article authorizes the Commission to establish one or more commission marketing orders, as herein provided, in the region or parts thereof as defined in the order.\n\nb\n\nA compact over-order price established pursuant to this section shall apply only to Class I milk. Such compact over-order price shall not exceed one dollar and fifty cents ($1.50) per gallon at Atlanta, Georgia, however, this compact over-order price shall be adjusted upward or downward at other locations in the region to reflect differences in minimum federal order prices. Beginning in 1990, and using that year as a base, the foregoing one dollar and fifty cents ($1.50) per gallon maximum shall be adjusted annually by the rate of change in the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States Department of Labor. For purposes of the pooling and equalization of an over-order price, the value of milk used in other use classifications shall be calculated at the appropriate class price established pursuant to the applicable federal order or state dairy regulation and the value of unregulated milk shall be calculated in relation to the nearest prevailing class price in accordance with and subject to such adjustments as the Commission may prescribe in regulations.\n\nc\n\nA commission marketing order shall apply to all classes and uses of milk.\n\nd\n\nThe Commission may establish a compact over-order price for milk to be paid by pool plants and partially regulated plants. The Commission also may establish a compact over-order price to be paid by all other handlers receiving milk from producers located in a regulated area. This price shall be established either as a compact over-order price or by one or more commission marketing orders. Whenever such a price has been established by either type of regulation, the legal obligation to pay such price shall be determined solely by the terms and purpose of the regulation without regard to the situs of the transfer of title, possession, or any other factors not related to the purposes of the regulation and this compact. Producer-handlers as defined in an applicable federal market order shall not be subject to a compact over-order price. The Commission shall provide for similar treatment of producer-handlers under commission marketing orders.\n\ne\n\nIn determining the price, the Commission shall consider the balance between production and consumption of milk and milk products in the regulated area, the costs of production including, but not limited to, the price of feed, the cost of labor including the reasonable value of the producer’s own labor and management, machinery expense and interest expense, the prevailing price for milk outside the regulated area, the purchasing power of the public, and the price necessary to yield a reasonable return to the producer and distributor.\n\nf\n\nWhen establishing a compact over-order price, the Commission shall take such other action as is necessary and feasible to help ensure that the over-order price does not cause or compensate producers so as to generate local production of milk in excess of those quantities necessary to assure consumers of an adequate supply for fluid purposes.\n\ng\n\nThe Commission shall whenever possible enter into agreements with state or federal agencies for exchange of information or services for the purpose of reducing regulatory burden and cost of administering the compact. The Commission may reimburse other agencies for the reasonable cost of providing these services.\n\t\t\t\u00a7 10. Optional provisions for pricing order.\n\n\t\t\tRegulations establishing a compact over-order price or a commission marketing order may contain, but shall not be limited to, any of the following:\n\n1\n\nProvisions classifying milk in accordance with the form in which or purpose for which it is used, or creating a flat pricing program.\n\n2\n\nWith respect to a commission marketing order only, provisions establishing or providing a method for establishing separate minimum prices for each use classification prescribed by the Commission, or a single minimum price for milk purchased from producers or associations of producers.\n\n3\n\nWith respect to an over-order minimum price, provisions establishing or providing a method for establishing such minimum price for Class I milk.\n\n4\n\nProvisions for establishing either an over-order price or a commission marketing order may make use of any reasonable method for establishing such price or prices including flat pricing and formula pricing. Provision may also be made for location adjustments, zone differentials, and competitive credits with respect to regulated handlers who market outside the regulated area.\n\n5\n\nProvisions for the payment to all producers and associations of producers delivering milk to all handlers of uniform prices for all milk so delivered, irrespective of the uses made of such milk by the individual handler to whom it is delivered, or for the payment of producers delivering milk to the same handler of uniform prices for all milk delivered by them.\n\t\t\t\ta. With respect to regulations establishing a compact over-order price, the Commission may establish one equalization pool within the regulated area for the sole purpose of equalizing returns to producers throughout the regulated area.\n\n\t\t\t\tb. With respect to any commission marketing order, as defined in § 2, subdivision (3), which replaces one or more terminated federal orders or state dairy regulation, the marketing area of now separate state or federal orders shall not be merged without the affirmative consent of each state, voting through its delegation, which is partly or wholly included within any such new marketing area.\n\n6\n\nProvisions requiring persons who bring Class I milk into the regulated area to make compensatory payments with respect to all such milk to the extent necessary to equalize the cost of milk purchased by handlers subject to a compact over-order price or commission marketing order. No such provisions shall discriminate against milk producers outside the regulated area. The provisions for compensatory payments may require payment of the difference between the Class I price required to be paid for such milk in the state of production by a federal milk marketing order or state dairy regulation and the Class I price established by the compact over-order price or commission marketing order.\n\n7\n\nProvisions specially governing the pricing and pooling of milk handled by partially regulated plants.\n\n8\n\nProvisions requiring that the account of any person regulated under the compact over-order price shall be adjusted for any payments made to or received by such persons with respect to a producer settlement fund of any federal or state milk marketing order or other state dairy regulation within the regulated area.\n\n9\n\nProvision requiring the payment by handlers of an assessment to cover the costs of the administration and enforcement of such order pursuant to subsection (a) of § 18 of Article VII.\n\n10\n\nProvisions for reimbursement to participants of the Women, Infants and Children Special Supplemental Food Program of the United States Child Nutrition Act of 1966.\n\n11\n\nOther provisions and requirements as the Commission may find are necessary or appropriate to effectuate the purposes of this compact and to provide for the payment of fair and equitable minimum prices to producers.\n\t\t\t\tARTICLE V. Rule-Making Procedure.\n\n\t\t\t\t§ 11. Rule-making procedure.\n\n\t\t\t\tBefore promulgation of any regulations establishing a compact over-order price or commission marketing order, including any provision with respect to milk supply under subsection (f) of § 9, or amendment thereof, as provided in Article IV, the Commission shall conduct an informal rule-making proceeding to provide interested persons with an opportunity to present data and views. Such rule-making proceeding shall be governed by § 4 of the Federal Administrative Procedure Act, as amended (5 U.S.C. § 553). In addition, the Commission shall, to the extent practicable, publish notice of rule-making proceedings in the official register of each participating state. Before the initial adoption of regulations establishing a compact over-order price or a commission marketing order and thereafter before any amendment with regard to prices or assessments, the Commission shall hold a public hearing. The Commission may commence a rule-making proceeding on its own initiative or may in its sole discretion act upon the petition of any person including individual milk producers, any organization of milk producers or handlers, general farm organizations, consumer or public interest groups, and local, state or federal officials.\n\n\t\t\t\t§ 12. Findings and referendum.\n\na\n\nIn addition to the concise general statement of basis and purpose required by \u00a7 4(b) of the Federal Administrative Procedure Act, as amended (5 U.S.C. \u00a7 553 (c)), the Commission shall make findings of fact with respect to:\n\n1\n\nWhether the public interest will be served by the establishment of minimum milk prices to dairy farmers under Article IV.\n\n2\n\nWhat level of prices will assure that producers receive a price sufficient to cover their costs of production and will elicit an adequate supply of milk for the inhabitants of the regulated area and for manufacturing purposes.\n\n3\n\nWhether the major provisions of the order, other than those fixing minimum milk prices, are in the public interest and are reasonably designed to achieve the purposes of the order.\n\n4\n\nWhether the terms of the proposed regional order or amendment are approved by producers as provided in § 13.\n\t\t\t\t§ 13. Producer referendum.\n\na\n\nFor the purpose of ascertaining whether the issuance or amendment of regulations establishing a compact over-order price or a commission marketing order, including any provision with respect to milk supply under subsection (f) of § 9, is approved by producers, the Commission shall conduct a referendum among producers. The referendum shall be held in a timely manner, as determined by regulation of the Commission. The terms and conditions of the proposed order or amendment shall be described by the Commission in the ballot used in the conduct of the referendum, but the nature, content, or extent of such description shall not be a basis for attacking the legality of the order or any action relating thereto.\n\nb\n\nAn order or amendment shall be deemed approved by producers if the Commission determines that it is approved by at least two-thirds of the voting producers who, during a representative period determined by the Commission, have been engaged in the production of milk the price of which would be regulated under the proposed order or amendment.\n\nc\n\nFor purposes of any referendum, the Commission shall consider the approval or disapproval by any cooperative association of producers, qualified under the provisions of the Act of Congress of February 18, 1922, as amended, known as the Capper-Volstead Act, bona fide engaged in marketing milk, or in rendering services for or advancing the interests of producers of such commodity, as the approval or disapproval of the producers who are members or stockholders in, or under contract with, such cooperative association of producers, except as provided in subdivision (1) of this subsection and subject to the provisions of subdivisions (2) through (5) of this subsection.\n\n1\n\nNo cooperative that has been formed to act as a common marketing agency for both cooperatives and individual producers shall be qualified to block vote for either.\n\n2\n\nAny cooperative that is qualified to block vote shall, before submitting its approval or disapproval in any referendum, give prior written notice to each of its members as to whether and how it intends to cast its vote. The notice shall be given in a timely manner as established, and in the form prescribed, by the Commission.\n\n3\n\nAny producer may obtain a ballot from the Commission in order to register approval or disapproval of the proposed order.\n\n4\n\nA producer who is a member of a cooperative which has provided notice of its intent to approve or not to approve a proposed order, and who obtains a ballot and with such ballot expresses his or her approval or disapproval of the proposed order, shall notify the Commission as to the name of the cooperative of which he or she is a member, and the Commission shall remove such producer’s name from the list certified by such cooperative with its corporate vote.\n\n5\n\nIn order to ensure that all milk producers are informed regarding a proposed order, the Commission shall notify all milk producers that an order is being considered and that each producer may register his or her approval or disapproval with the Commission either directly or through his or her cooperative.\n\t\t\t\t§ 14. Termination of over-order price or marketing order.\n\na\n\nThe Commission shall terminate any regulations establishing an over-order price or commission marketing order issued under this Article whenever it finds that such order or price obstructs or does not tend to effectuate the declared policy of this compact.\n\nb\n\nThe Commission shall terminate any regulations establishing an over-order price or a commission marketing order issued under this Article whenever it finds that such termination is favored by a majority of the producers who, during a representative period determined by the Commission, have been engaged in the production of milk, the price of which is regulated by such order; but such termination shall be effective only if announced on or before such date as may be specified in such marketing agreement or order.\n\nc\n\nThe termination or suspension of any order or provision thereof, shall not be considered an order within the meaning of this Article and shall require no hearing, but shall comply with the requirements for informal rule making prescribed by § 4 of the Federal Administrative Procedure Act, as amended (5 U.S.C. § 553).\n\t\t\tARTICLE VI. Enforcement.\n\n\t\t\t§ 15. Records, reports, access to premises.\n\na\n\nThe Commission may by rule and regulation prescribe record keeping and reporting requirements for all regulated persons. For purposes of the administration and enforcement of this compact, the Commission may examine the books and records of any regulated person relating to his or her milk business and for that purpose, the Commission’s properly designated officers, employees, or agents shall have full access during normal business hours to the premises and records of all regulated persons.\n\nb\n\nInformation furnished to or acquired by the Commission officers, employees, or its agents pursuant to this section shall be confidential and not subject to disclosure except to the extent that the Commission deems disclosure to be necessary in any administrative or judicial proceeding involving the administration or enforcement of this compact, an over-order price, a compact marketing order, or other regulations of the Commission. The Commission may adopt rules further defining the confidentiality of information pursuant to this section. Nothing in this section shall be deemed to prohibit (i) the issuance of general statements based upon the reports of a number of handlers, which do not identify the information furnished by any person, or (ii) the publication by direction of the Commission of the name of any person violating any regulation of the Commission, together with a statement of the particular provisions violated by such person.\n\nc\n\nNo officer, employee, or agent of the Commission shall intentionally disclose information, by inference or otherwise, that is made confidential pursuant to this section. Any person violating the provisions of this section shall, upon conviction, be subject to a fine of not more than one thousand dollars ($1,000) or to imprisonment for not more than one year, or both, and shall be removed from office. The Commission shall refer any allegation of a violation of this section to the appropriate state enforcement authority or United States Attorney.\n\t\t\t§ 16. Subpoena, hearings, and judicial review.\n\na\n\nThe Commission is hereby authorized and empowered by its members and its properly designated officers to administer oaths and issue subpoenas throughout all signatory states to compel the attendance of witnesses and the giving of testimony and the production of other evidence.\n\nb\n\nAny handler subject to an order may file a written petition with the Commission stating that any order or any provision of any such order or any obligation imposed in connection therewith is not in accordance with law and praying for a modification thereof or to be exempted therefrom. The handler shall thereupon be given an opportunity for a hearing upon such petition, in accordance with regulations made by the Commission. After such hearing, the Commission shall make a ruling upon the prayer of such petition which shall be final, if in accordance with law.\n\nc\n\nThe district courts of the United States in any district in which the handler is an inhabitant, or has his or her principal place of business, are hereby vested with jurisdiction to review such ruling, provided a complaint for that purpose is filed within 30 days from the date of the entry of the ruling. Service of process in these proceedings may be had upon the Commission by delivering to it a copy of the complaint. If the court determines that the ruling is not in accordance with law, it shall remand such proceedings to the Commission with directions either (i) to make such ruling as the court shall determine to be in accordance with law, or (ii) to take such further proceedings as, in its opinion, the law requires. The pendency of proceedings instituted pursuant to this subdivision shall not impede, hinder, or delay the Commission from obtaining relief pursuant to § 17. Any proceedings brought pursuant to § 17, except where brought by way of counterclaim in proceedings instituted pursuant to this section, shall abate whenever a final decree has been rendered in proceedings between the same parties, and covering the same subject matter, instituted pursuant to this section.\n\t\t\t§ 17. Enforcement with respect to handlers.\n\na\n\nAny violation by a handler of the provisions of regulation establishing an over-order price or a commission marketing order, or other regulations adopted pursuant to this compact shall:\n\n1\n\nConstitute a violation of the laws of each of the signatory states. Such violation shall render the violator subject to a civil penalty in an amount as may be prescribed by the laws of each of the participating states, recoverable in any state or federal court of competent jurisdiction. Each day such violation continues shall constitute a separate violation.\n\n2\n\nConstitute grounds for the revocation of license or permit to engage in the milk business under the applicable laws of the participating states.\n\nb\n\nWith respect to handlers, the Commission shall enforce the provisions of this compact, regulations establishing an over-order price, a commission marketing order or other regulations adopted hereunder by:\n\n1\n\nCommencing an action for legal or equitable relief brought in the name of the Commission in any state or federal court of competent jurisdiction; or\n\n2\n\nReferral to the state agency for enforcement by judicial or administrative remedy with the agreement of the appropriate state agency of a participating state.\n\nc\n\nWith respect to handlers, the Commission may bring an action for injunction to enforce the provisions of this compact or the order or regulations adopted thereunder without being compelled to allege or prove that an adequate remedy of law does not exist.\n\t\t\tARTICLE VII. Finance.\n\n\t\t\t§ 18. Finance of start-up and regular costs.\n\na\n\nTo provide for its start-up costs, the Commission may borrow money pursuant to its general power under § 6, subsection (d), subdivision 4. In order to finance the cost of administration and enforcement of this compact, including payback of start-up costs, the Commission may collect an assessment from each handler who purchases milk from producers within the region. If imposed, this assessment shall be collected on a monthly basis for up to one year from the date the Commission convenes, in an amount not to exceed $.015 per hundred weight of milk purchased from producers during the period of the assessment. The initial assessment may apply to the projected purchases of handlers for the two-month period following the date the Commission convenes. In addition, if regulations establishing an over-order price or a compact marketing order are adopted, they may include an assessment for the specific purpose of their administration. These regulations shall provide for establishment of a reserve for the Commission’s ongoing operating expenses.\n\nb\n\nThe Commission shall not pledge the credit of any participating state or of the United States. Notes issued by the Commission and all other financial obligations incurred by it, shall be its sole responsibility and no participating state or the United States shall be liable therefor.\n\t\t\t§ 19. Audit and accounts.\n\na\n\nThe Commission shall keep accurate accounts of all receipts and disbursements, which shall be subject to the audit and accounting procedures established under its rules. In addition, all receipts and disbursements of funds handled by the Commission shall be audited yearly by a qualified public accountant and the report of the audit shall be included in and become part of the annual report of the Commission.\n\nb\n\nThe accounts of the Commission shall be open at any reasonable time for inspection by duly constituted officers of the participating states and by any persons authorized by the Commission.\n\nc\n\nNothing contained in this Article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any participating state or of the United States.\n\t\t\tARTICLE VIII. Entry into Force; Additional Members and Withdrawal.\n\n\t\t\t§ 20. Entry into force; additional members.\n\n\t\t\tThe compact shall enter into force effective when enacted into law by any three states of the group of states composed of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia and when the consent of Congress has been obtained.\n\n\t\t\t§ 21. Withdrawal from compact.\n\n\t\t\tAny participating state may withdraw from this compact by enacting a statute repealing the same, but no such withdrawal shall take effect until one year after notice in writing of the withdrawal is given to the Commission and the governors of all the participating states. No withdrawal shall affect any liability already incurred by or chargeable to a participating state prior to the time of such withdrawal.\n\n\t\t\t§ 22. Severability.\n\n\t\t\tIf any part or provision of this compact is adjudged invalid by any court, such judgment shall be confined in its operation to the part or provision directly involved in the controversy in which such judgment shall have been rendered and shall not affect or impair the validity of the remainder of this compact. In the event Congress consents to this compact subject to conditions, said conditions shall not impair the validity of this compact when said conditions are accepted by three or more compacting states. A compact state may accept the conditions of Congress by implementation of this compact.\n\n","order_by":null,"text":{"0":{"id":1330310,"text":"The Southern Dairy Compact is enacted into law and entered into with all other jurisdictions legally joining therein in the form substantially as follows:\t\tARTICLE I. Statement of Purpose, Findings, and Declaration of Policy.\t\t\u00a7 1. Statement of purpose, findings, and declaration of policy.\t\tThe purpose of this compact is to recognize the interstate character of the southern dairy industry and the prerogative of the states under the United States Constitution to form an interstate commission for the southern region. The mission of the Commission is to take such steps as are necessary to assure the continued viability of dairy farming in the South, and to assure consumers of an adequate, local supply of pure and wholesome milk.\t\tThe participating states find and declare that the dairy industry is an essential agricultural activity of the South. Dairy farms, and associated suppliers, marketers, processors, and retailers, are an integral component of the region’s economy. Their ability to provide a stable, local supply of pure, wholesome milk is a matter of great importance to the health and welfare of the region.\t\tThe participating states further find that dairy farms are essential, and they are an integral part of the region’s rural communities. The farms preserve land for agricultural purposes and provide needed economic stimuli for rural communities.\t\tBy entering into this compact, the participating states affirm that their ability to regulate the price that southern dairy farmers receive for their product is essential to the public interest. Assurance of a fair and equitable price for dairy farmers ensures their ability to provide milk to the market and the vitality of the southern dairy industry, with all the associated benefits.\t\tRecent dramatic price fluctuations, with a pronounced downward trend, threaten the viability and stability of the southern dairy region. Historically, individual state regulatory action had been an effective emergency remedy available to farmers confronting a distressed market. The system of federal orders, implemented by the Agricultural Marketing Agreement Act of 1937, establishes only minimum prices paid to producers for raw milk, without preempting the power of states to regulate milk prices above the minimum levels so established.\t\tIn today’s regional dairy marketplace, cooperative, rather than individual state action is needed to more effectively address the market disarray. Under our constitutional system, properly authorized states acting cooperatively may exercise more power to regulate interstate commerce than they may assert individually without such authority. For this reason, the participating states invoke their authority to act in common agreement, with the consent of Congress, under the compact clause of the Constitution.\t\tIn establishing their constitutional regulatory authority over the region’s fluid milk market by this compact, the participating states declare their purpose that this compact neither displace the system of federal orders nor encourage the merging of federal orders. Specific provisions of the compact itself set forth this basic principle.\t\tDesigned as a flexible mechanism able to adjust to changes in a regulated marketplace, the compact also contains a contingency provision should the system of federal orders be discontinued. In that event, the interstate commission may regulate the marketplace in lieu of the system of federal orders. This contingent authority does not anticipate such a change, however, and should not be so construed. It is only provided should developments in the market other than establishment of this compact result in discontinuance of the system of federal orders.\t\tARTICLE II. Definitions and Rules of Construction.\t\t\u00a7 2. Definitions.\t\tFor the purposes of this compact, and of any supplemental or concurring legislation enacted pursuant thereto, except as may be otherwise required by the context:\t\t“Class I milk” means milk disposed of in fluid form or as a fluid milk product, subject to further definition in accordance with the principles expressed in subsection (b) of \u00a7 3.\t\t“Commission” means the Southern Dairy Compact Commission established by this compact.\t\t“Commission marketing order” means regulations adopted by the Commission pursuant to \u00a7\u00a7 9 and 10 of this compact in place of a terminated federal marketing order or state dairy regulation. Such order may apply throughout the region or in any part or parts thereof as defined in the regulations of the Commission. Such order may establish minimum prices for any or all classes of milk.\t\t“Compact” means this interstate compact.\t\t“Compact over-order price” means a minimum price required to be paid to producers for Class I milk established by the Commission in regulations adopted pursuant to \u00a7\u00a7 9 and 10 of this compact, which is above the price established in federal marketing orders or by state farm price regulation in the regulated area. Such price may apply throughout the region or in any part or parts thereof as defined in the regulations of the Commission.\t\t“Milk” means the lacteal secretion of cows and includes all skim, butterfat, or other constituents obtained from separation or any other process. The term is used in its broadest sense and may be further defined by the Commission for regulatory purposes.\t\t“Partially regulated plant” means a milk plant not located in a regulated area but having Class I distribution within such area. Commission regulations may exempt plants having such distribution or receipts in amounts less than the limits defined therein.\t\t“Participating state” means a state which has become a party to this compact by the enactment of concurring legislation.\t\t“Pool plant” means any milk plant located in a regulated area.\t\t“Region” means the territorial limits of the states which are parties to this compact.\t\t“Regulated area” means any area within the region governed by and defined in regulations establishing a compact over-order price or commission marketing order.\t\t“State dairy regulation” means any state regulation of dairy prices and associated assessments, whether by statute, marketing order, or otherwise.\t\t\u00a7 3. Rules of construction.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"a"},"1":{"id":1330311,"text":"This compact shall not be construed to displace existing federal milk marketing orders or state dairy regulation in the region but to supplement them. In the event some or all federal orders in the region are discontinued, the compact shall be construed to provide the Commission the option to replace them with one or more commission marketing orders pursuant to this compact.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"","next_prefix":"b"},"2":{"id":1330312,"text":"This compact shall be construed liberally in order to achieve the purposes and intent enunciated in § 1. It is the intent of this compact to establish a basic structure by which the Commission may achieve those purposes through the application, adaptation, and development of the regulatory techniques historically associated with milk marketing and to afford the Commission broad flexibility to devise regulatory mechanisms to achieve the purposes of this compact. In accordance with this intent, the technical terms which are associated with market order regulation and which have acquired commonly understood general meanings are not defined herein but the Commission may further define the terms used in this compact and develop additional concepts and define additional terms as it may find appropriate to achieve its purposes.\n\t\t\tARTICLE III. Commission Established.\t\t\t§ 4. Commission established.\t\t\tThere is hereby created a commission to administer the compact, composed of delegations from each state in the region. The Commission shall be known as the Southern Dairy Compact Commission. A delegation shall include not less than three nor more than five persons. Each delegation shall include at least one dairy farmer who is engaged in the production of milk at the time of appointment or reappointment, and one consumer representative. Delegation members shall be residents and voters of, and subject to such confirmation process as is provided for in, the appointing state. Delegation members shall serve no more than three consecutive terms with no single term of more than four years, and be subject to removal for cause. In all other respects, delegation members shall serve in accordance with the laws of the state represented. The compensation, if any, of the members of a state delegation shall be determined and paid by each state, but their expenses shall be paid by the Commission.\t\t\t§ 5. Voting requirements.\t\t\tAll actions taken by the Commission, except for the establishment or termination of an over-order price or commission marketing order, and the adoption, amendment, or rescission of the Commission’s bylaws, shall be by majority vote of the delegations present. Each state delegation shall be entitled to one vote in the conduct of the Commission’s affairs. Establishment or termination of an over-order price or commission marketing order shall require at least a two-thirds vote of the delegations present. The establishment of a regulated area that covers all or part of a participating state shall require also the affirmative vote of that state’s delegation. A majority of the delegations from the participating states shall constitute a quorum for the conduct of the Commission’s business.\t\t\t§ 6. Administration and management.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"a"},"3":{"id":1330313,"text":"The Commission shall elect annually from among the members of the participating state delegations a chairperson, a vice-chairperson, and a treasurer. The Commission shall appoint an executive director and fix his or her duties and compensation. The executive director shall serve at the pleasure of the Commission, and, together with the treasurer, shall be bonded in an amount determined by the Commission. The Commission may establish through its bylaws an executive committee composed of one member elected by each delegation.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"b","next_prefix":"b"},"4":{"id":1330314,"text":"The Commission shall adopt bylaws for the conduct of its business by a two-thirds vote and shall have the power by the same vote to amend and rescind these bylaws. The Commission shall publish its bylaws in convenient form with the appropriate agency or officer in each of the participating states. The bylaws shall provide for appropriate notice to the delegations of all Commission meetings and hearings and of the business to be transacted at such meetings or hearings. Notice also shall be given to other agencies or officers of participating states as provided by the laws of those states.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"5":{"id":1330315,"text":"The Commission shall file an annual report with the Secretary of Agriculture of the United States, and with each of the participating states by submitting copies to the Governor, both houses of the legislature, and the head of the state department having responsibilities for agriculture.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"6":{"id":1330316,"text":"In addition to the powers and duties elsewhere prescribed in this compact, the Commission may engage in all of the following:","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"d1"},"7":{"id":1330317,"text":"Sue and be sued in any state or federal court.","type":"section","prefixes":["d","1"],"prefix":"1","entire_prefix":"d1","prefix_anchor":"d1","level":2,"prior_prefix":"d","next_prefix":"d2"},"8":{"id":1330318,"text":"Have a seal and alter the same at pleasure.","type":"section","prefixes":["d","2"],"prefix":"2","entire_prefix":"d2","prefix_anchor":"d2","level":2,"prior_prefix":"d1","next_prefix":"d3"},"9":{"id":1330319,"text":"Acquire, hold, and dispose of real and personal property by gift, purchase, lease, license, or other similar manner, for its corporate purposes.","type":"section","prefixes":["d","3"],"prefix":"3","entire_prefix":"d3","prefix_anchor":"d3","level":2,"prior_prefix":"d2","next_prefix":"d4"},"10":{"id":1330320,"text":"Borrow money and to issue notes, to provide for the rights of the holders thereof, and to pledge the revenue of the Commission as security therefor, subject to the provisions of § 18 of this compact.","type":"section","prefixes":["d","4"],"prefix":"4","entire_prefix":"d4","prefix_anchor":"d4","level":2,"prior_prefix":"d3","next_prefix":"d5"},"11":{"id":1330321,"text":"Appoint such officers, agents, and employees as it may deem necessary, prescribe their powers, duties, and qualifications.","type":"section","prefixes":["d","5"],"prefix":"5","entire_prefix":"d5","prefix_anchor":"d5","level":2,"prior_prefix":"d4","next_prefix":"d6"},"12":{"id":1330322,"text":"Create and abolish such offices, employments, and positions as it deems necessary for the purposes of the compact and provide for the removal, term, tenure, compensation, fringe benefits, pension, and retirement rights of its officers and employees.","type":"section","prefixes":["d","6"],"prefix":"6","entire_prefix":"d6","prefix_anchor":"d6","level":2,"prior_prefix":"d5","next_prefix":"d7"},"13":{"id":1330323,"text":"Retain personal services on a contract basis.\n\t\t\t\t§ 7. Rule-making power.\t\t\t\tIn addition to the power to promulgate a compact over-order price or commission marketing orders as provided by this compact, the Commission is further empowered to make and enforce such additional rules and regulations as it deems necessary to implement any provisions of this compact, or to effectuate in any other respect the purposes of this compact.\t\t\t\tARTICLE IV. Powers of the Commission.\t\t\t\t§ 8. Powers to promote regulatory uniformity, simplicity, and interstate cooperation.\t\t\t\tThe Commission may:","type":"section","prefixes":["d","7"],"prefix":"7","entire_prefix":"d7","prefix_anchor":"d7","level":2,"prior_prefix":"d6","next_prefix":"d1"},"14":{"id":1330324,"text":"Investigate or provide for investigations or research projects designed to review the existing laws and regulations of the participating states, to consider their administration and costs, and to measure their impact on the production and marketing of milk and their effects on the shipment of milk and milk products within the region.","type":"section","prefixes":["d","1"],"prefix":"1","entire_prefix":"d1","prefix_anchor":"d1","level":2,"prior_prefix":"d7","next_prefix":"d2"},"15":{"id":1330325,"text":"Study and recommend to the participating states joint or cooperative programs for the administration of the dairy marketing laws and regulations and to prepare estimates of cost savings and benefits of such programs.","type":"section","prefixes":["d","2"],"prefix":"2","entire_prefix":"d2","prefix_anchor":"d2","level":2,"prior_prefix":"d1","next_prefix":"d3"},"16":{"id":1330326,"text":"Encourage the harmonious relationships between the various elements in the industry for the solution of their material problems. Conduct symposia or conferences designed to improve industry relations, or a better understanding of problems.","type":"section","prefixes":["d","3"],"prefix":"3","entire_prefix":"d3","prefix_anchor":"d3","level":2,"prior_prefix":"d2","next_prefix":"d4"},"17":{"id":1330327,"text":"Prepare and release periodic reports on activities and results of the Commission’s efforts to the participating states.","type":"section","prefixes":["d","4"],"prefix":"4","entire_prefix":"d4","prefix_anchor":"d4","level":2,"prior_prefix":"d3","next_prefix":"d5"},"18":{"id":1330328,"text":"Review the existing marketing system for milk and milk products and recommend changes in the existing structure for assembly and distribution of milk which may assist, improve, or promote more efficient assembly and distribution of milk.","type":"section","prefixes":["d","5"],"prefix":"5","entire_prefix":"d5","prefix_anchor":"d5","level":2,"prior_prefix":"d4","next_prefix":"d6"},"19":{"id":1330329,"text":"Investigate costs and charges for producing, hauling, handling, processing, distributing, selling, and for all other services, performed with respect to milk.","type":"section","prefixes":["d","6"],"prefix":"6","entire_prefix":"d6","prefix_anchor":"d6","level":2,"prior_prefix":"d5","next_prefix":"d7"},"20":{"id":1330330,"text":"Examine current economic forces affecting producers, probable trends in production and consumption, the level of dairy farm prices in relation to costs, the financial conditions of dairy farmers, and the need for an emergency order to relieve critical conditions on dairy farms.\n\t\t\t\t§ 9. Equitable farm prices.","type":"section","prefixes":["d","7"],"prefix":"7","entire_prefix":"d7","prefix_anchor":"d7","level":2,"prior_prefix":"d6","next_prefix":"a"},"21":{"id":1330331,"text":"The powers granted in this section and § 10 shall apply only to the establishment of a compact over-order price, so long as federal milk marketing orders remain in effect in the region. In the event that any or all such orders are terminated, this article authorizes the Commission to establish one or more commission marketing orders, as herein provided, in the region or parts thereof as defined in the order.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"d7","next_prefix":"b"},"22":{"id":1330332,"text":"A compact over-order price established pursuant to this section shall apply only to Class I milk. Such compact over-order price shall not exceed one dollar and fifty cents ($1.50) per gallon at Atlanta, Georgia, however, this compact over-order price shall be adjusted upward or downward at other locations in the region to reflect differences in minimum federal order prices. Beginning in 1990, and using that year as a base, the foregoing one dollar and fifty cents ($1.50) per gallon maximum shall be adjusted annually by the rate of change in the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States Department of Labor. For purposes of the pooling and equalization of an over-order price, the value of milk used in other use classifications shall be calculated at the appropriate class price established pursuant to the applicable federal order or state dairy regulation and the value of unregulated milk shall be calculated in relation to the nearest prevailing class price in accordance with and subject to such adjustments as the Commission may prescribe in regulations.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"23":{"id":1330333,"text":"A commission marketing order shall apply to all classes and uses of milk.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"24":{"id":1330334,"text":"The Commission may establish a compact over-order price for milk to be paid by pool plants and partially regulated plants. The Commission also may establish a compact over-order price to be paid by all other handlers receiving milk from producers located in a regulated area. This price shall be established either as a compact over-order price or by one or more commission marketing orders. Whenever such a price has been established by either type of regulation, the legal obligation to pay such price shall be determined solely by the terms and purpose of the regulation without regard to the situs of the transfer of title, possession, or any other factors not related to the purposes of the regulation and this compact. Producer-handlers as defined in an applicable federal market order shall not be subject to a compact over-order price. The Commission shall provide for similar treatment of producer-handlers under commission marketing orders.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"25":{"id":1330335,"text":"In determining the price, the Commission shall consider the balance between production and consumption of milk and milk products in the regulated area, the costs of production including, but not limited to, the price of feed, the cost of labor including the reasonable value of the producer’s own labor and management, machinery expense and interest expense, the prevailing price for milk outside the regulated area, the purchasing power of the public, and the price necessary to yield a reasonable return to the producer and distributor.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"f"},"26":{"id":1330336,"text":"When establishing a compact over-order price, the Commission shall take such other action as is necessary and feasible to help ensure that the over-order price does not cause or compensate producers so as to generate local production of milk in excess of those quantities necessary to assure consumers of an adequate supply for fluid purposes.","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e","next_prefix":"g"},"27":{"id":1330337,"text":"The Commission shall whenever possible enter into agreements with state or federal agencies for exchange of information or services for the purpose of reducing regulatory burden and cost of administering the compact. The Commission may reimburse other agencies for the reasonable cost of providing these services.\n\t\t\t\u00a7 10. Optional provisions for pricing order.\t\t\tRegulations establishing a compact over-order price or a commission marketing order may contain, but shall not be limited to, any of the following:","type":"section","prefixes":["g"],"prefix":"g","entire_prefix":"g","prefix_anchor":"g","level":1,"prior_prefix":"f","next_prefix":"g1"},"28":{"id":1330338,"text":"Provisions classifying milk in accordance with the form in which or purpose for which it is used, or creating a flat pricing program.","type":"section","prefixes":["g","1"],"prefix":"1","entire_prefix":"g1","prefix_anchor":"g1","level":2,"prior_prefix":"g","next_prefix":"g2"},"29":{"id":1330339,"text":"With respect to a commission marketing order only, provisions establishing or providing a method for establishing separate minimum prices for each use classification prescribed by the Commission, or a single minimum price for milk purchased from producers or associations of producers.","type":"section","prefixes":["g","2"],"prefix":"2","entire_prefix":"g2","prefix_anchor":"g2","level":2,"prior_prefix":"g1","next_prefix":"g3"},"30":{"id":1330340,"text":"With respect to an over-order minimum price, provisions establishing or providing a method for establishing such minimum price for Class I milk.","type":"section","prefixes":["g","3"],"prefix":"3","entire_prefix":"g3","prefix_anchor":"g3","level":2,"prior_prefix":"g2","next_prefix":"g4"},"31":{"id":1330341,"text":"Provisions for establishing either an over-order price or a commission marketing order may make use of any reasonable method for establishing such price or prices including flat pricing and formula pricing. Provision may also be made for location adjustments, zone differentials, and competitive credits with respect to regulated handlers who market outside the regulated area.","type":"section","prefixes":["g","4"],"prefix":"4","entire_prefix":"g4","prefix_anchor":"g4","level":2,"prior_prefix":"g3","next_prefix":"g5"},"32":{"id":1330342,"text":"Provisions for the payment to all producers and associations of producers delivering milk to all handlers of uniform prices for all milk so delivered, irrespective of the uses made of such milk by the individual handler to whom it is delivered, or for the payment of producers delivering milk to the same handler of uniform prices for all milk delivered by them.\n\t\t\t\ta. With respect to regulations establishing a compact over-order price, the Commission may establish one equalization pool within the regulated area for the sole purpose of equalizing returns to producers throughout the regulated area.\t\t\t\tb. With respect to any commission marketing order, as defined in § 2, subdivision (3), which replaces one or more terminated federal orders or state dairy regulation, the marketing area of now separate state or federal orders shall not be merged without the affirmative consent of each state, voting through its delegation, which is partly or wholly included within any such new marketing area.","type":"section","prefixes":["g","5"],"prefix":"5","entire_prefix":"g5","prefix_anchor":"g5","level":2,"prior_prefix":"g4","next_prefix":"g6"},"33":{"id":1330343,"text":"Provisions requiring persons who bring Class I milk into the regulated area to make compensatory payments with respect to all such milk to the extent necessary to equalize the cost of milk purchased by handlers subject to a compact over-order price or commission marketing order. No such provisions shall discriminate against milk producers outside the regulated area. The provisions for compensatory payments may require payment of the difference between the Class I price required to be paid for such milk in the state of production by a federal milk marketing order or state dairy regulation and the Class I price established by the compact over-order price or commission marketing order.","type":"section","prefixes":["g","6"],"prefix":"6","entire_prefix":"g6","prefix_anchor":"g6","level":2,"prior_prefix":"g5","next_prefix":"g7"},"34":{"id":1330344,"text":"Provisions specially governing the pricing and pooling of milk handled by partially regulated plants.","type":"section","prefixes":["g","7"],"prefix":"7","entire_prefix":"g7","prefix_anchor":"g7","level":2,"prior_prefix":"g6","next_prefix":"g8"},"35":{"id":1330345,"text":"Provisions requiring that the account of any person regulated under the compact over-order price shall be adjusted for any payments made to or received by such persons with respect to a producer settlement fund of any federal or state milk marketing order or other state dairy regulation within the regulated area.","type":"section","prefixes":["g","8"],"prefix":"8","entire_prefix":"g8","prefix_anchor":"g8","level":2,"prior_prefix":"g7","next_prefix":"g9"},"36":{"id":1330346,"text":"Provision requiring the payment by handlers of an assessment to cover the costs of the administration and enforcement of such order pursuant to subsection (a) of § 18 of Article VII.","type":"section","prefixes":["g","9"],"prefix":"9","entire_prefix":"g9","prefix_anchor":"g9","level":2,"prior_prefix":"g8","next_prefix":"g10"},"37":{"id":1330347,"text":"Provisions for reimbursement to participants of the Women, Infants and Children Special Supplemental Food Program of the United States Child Nutrition Act of 1966.","type":"section","prefixes":["g","10"],"prefix":"10","entire_prefix":"g10","prefix_anchor":"g10","level":2,"prior_prefix":"g9","next_prefix":"g11"},"38":{"id":1330348,"text":"Other provisions and requirements as the Commission may find are necessary or appropriate to effectuate the purposes of this compact and to provide for the payment of fair and equitable minimum prices to producers.\n\t\t\t\tARTICLE V. Rule-Making Procedure.\t\t\t\t§ 11. Rule-making procedure.\t\t\t\tBefore promulgation of any regulations establishing a compact over-order price or commission marketing order, including any provision with respect to milk supply under subsection (f) of § 9, or amendment thereof, as provided in Article IV, the Commission shall conduct an informal rule-making proceeding to provide interested persons with an opportunity to present data and views. Such rule-making proceeding shall be governed by § 4 of the Federal Administrative Procedure Act, as amended (5 U.S.C. § 553). In addition, the Commission shall, to the extent practicable, publish notice of rule-making proceedings in the official register of each participating state. Before the initial adoption of regulations establishing a compact over-order price or a commission marketing order and thereafter before any amendment with regard to prices or assessments, the Commission shall hold a public hearing. The Commission may commence a rule-making proceeding on its own initiative or may in its sole discretion act upon the petition of any person including individual milk producers, any organization of milk producers or handlers, general farm organizations, consumer or public interest groups, and local, state or federal officials.\t\t\t\t§ 12. Findings and referendum.","type":"section","prefixes":["g","11"],"prefix":"11","entire_prefix":"g11","prefix_anchor":"g11","level":2,"prior_prefix":"g10","next_prefix":"a"},"39":{"id":1330349,"text":"In addition to the concise general statement of basis and purpose required by \u00a7 4(b) of the Federal Administrative Procedure Act, as amended (5 U.S.C. \u00a7 553 (c)), the Commission shall make findings of fact with respect to:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"g11","next_prefix":"a1"},"40":{"id":1330350,"text":"Whether the public interest will be served by the establishment of minimum milk prices to dairy farmers under Article IV.","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"41":{"id":1330351,"text":"What level of prices will assure that producers receive a price sufficient to cover their costs of production and will elicit an adequate supply of milk for the inhabitants of the regulated area and for manufacturing purposes.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"a3"},"42":{"id":1330352,"text":"Whether the major provisions of the order, other than those fixing minimum milk prices, are in the public interest and are reasonably designed to achieve the purposes of the order.","type":"section","prefixes":["a","3"],"prefix":"3","entire_prefix":"a3","prefix_anchor":"a3","level":2,"prior_prefix":"a2","next_prefix":"a4"},"43":{"id":1330353,"text":"Whether the terms of the proposed regional order or amendment are approved by producers as provided in § 13.\n\t\t\t\t§ 13. Producer referendum.","type":"section","prefixes":["a","4"],"prefix":"4","entire_prefix":"a4","prefix_anchor":"a4","level":2,"prior_prefix":"a3","next_prefix":"a"},"44":{"id":1330354,"text":"For the purpose of ascertaining whether the issuance or amendment of regulations establishing a compact over-order price or a commission marketing order, including any provision with respect to milk supply under subsection (f) of § 9, is approved by producers, the Commission shall conduct a referendum among producers. The referendum shall be held in a timely manner, as determined by regulation of the Commission. The terms and conditions of the proposed order or amendment shall be described by the Commission in the ballot used in the conduct of the referendum, but the nature, content, or extent of such description shall not be a basis for attacking the legality of the order or any action relating thereto.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"a4","next_prefix":"b"},"45":{"id":1330355,"text":"An order or amendment shall be deemed approved by producers if the Commission determines that it is approved by at least two-thirds of the voting producers who, during a representative period determined by the Commission, have been engaged in the production of milk the price of which would be regulated under the proposed order or amendment.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"46":{"id":1330356,"text":"For purposes of any referendum, the Commission shall consider the approval or disapproval by any cooperative association of producers, qualified under the provisions of the Act of Congress of February 18, 1922, as amended, known as the Capper-Volstead Act, bona fide engaged in marketing milk, or in rendering services for or advancing the interests of producers of such commodity, as the approval or disapproval of the producers who are members or stockholders in, or under contract with, such cooperative association of producers, except as provided in subdivision (1) of this subsection and subject to the provisions of subdivisions (2) through (5) of this subsection.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"c1"},"47":{"id":1330357,"text":"No cooperative that has been formed to act as a common marketing agency for both cooperatives and individual producers shall be qualified to block vote for either.","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"48":{"id":1330358,"text":"Any cooperative that is qualified to block vote shall, before submitting its approval or disapproval in any referendum, give prior written notice to each of its members as to whether and how it intends to cast its vote. The notice shall be given in a timely manner as established, and in the form prescribed, by the Commission.","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"c3"},"49":{"id":1330359,"text":"Any producer may obtain a ballot from the Commission in order to register approval or disapproval of the proposed order.","type":"section","prefixes":["c","3"],"prefix":"3","entire_prefix":"c3","prefix_anchor":"c3","level":2,"prior_prefix":"c2","next_prefix":"c4"},"50":{"id":1330360,"text":"A producer who is a member of a cooperative which has provided notice of its intent to approve or not to approve a proposed order, and who obtains a ballot and with such ballot expresses his or her approval or disapproval of the proposed order, shall notify the Commission as to the name of the cooperative of which he or she is a member, and the Commission shall remove such producer’s name from the list certified by such cooperative with its corporate vote.","type":"section","prefixes":["c","4"],"prefix":"4","entire_prefix":"c4","prefix_anchor":"c4","level":2,"prior_prefix":"c3","next_prefix":"c5"},"51":{"id":1330361,"text":"In order to ensure that all milk producers are informed regarding a proposed order, the Commission shall notify all milk producers that an order is being considered and that each producer may register his or her approval or disapproval with the Commission either directly or through his or her cooperative.\n\t\t\t\t§ 14. Termination of over-order price or marketing order.","type":"section","prefixes":["c","5"],"prefix":"5","entire_prefix":"c5","prefix_anchor":"c5","level":2,"prior_prefix":"c4","next_prefix":"a"},"52":{"id":1330362,"text":"The Commission shall terminate any regulations establishing an over-order price or commission marketing order issued under this Article whenever it finds that such order or price obstructs or does not tend to effectuate the declared policy of this compact.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"c5","next_prefix":"b"},"53":{"id":1330363,"text":"The Commission shall terminate any regulations establishing an over-order price or a commission marketing order issued under this Article whenever it finds that such termination is favored by a majority of the producers who, during a representative period determined by the Commission, have been engaged in the production of milk, the price of which is regulated by such order; but such termination shall be effective only if announced on or before such date as may be specified in such marketing agreement or order.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"54":{"id":1330364,"text":"The termination or suspension of any order or provision thereof, shall not be considered an order within the meaning of this Article and shall require no hearing, but shall comply with the requirements for informal rule making prescribed by § 4 of the Federal Administrative Procedure Act, as amended (5 U.S.C. § 553).\n\t\t\tARTICLE VI. Enforcement.\t\t\t§ 15. Records, reports, access to premises.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"a"},"55":{"id":1330365,"text":"The Commission may by rule and regulation prescribe record keeping and reporting requirements for all regulated persons. For purposes of the administration and enforcement of this compact, the Commission may examine the books and records of any regulated person relating to his or her milk business and for that purpose, the Commission’s properly designated officers, employees, or agents shall have full access during normal business hours to the premises and records of all regulated persons.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"c","next_prefix":"b"},"56":{"id":1330366,"text":"Information furnished to or acquired by the Commission officers, employees, or its agents pursuant to this section shall be confidential and not subject to disclosure except to the extent that the Commission deems disclosure to be necessary in any administrative or judicial proceeding involving the administration or enforcement of this compact, an over-order price, a compact marketing order, or other regulations of the Commission. The Commission may adopt rules further defining the confidentiality of information pursuant to this section. Nothing in this section shall be deemed to prohibit (i) the issuance of general statements based upon the reports of a number of handlers, which do not identify the information furnished by any person, or (ii) the publication by direction of the Commission of the name of any person violating any regulation of the Commission, together with a statement of the particular provisions violated by such person.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"57":{"id":1330367,"text":"No officer, employee, or agent of the Commission shall intentionally disclose information, by inference or otherwise, that is made confidential pursuant to this section. Any person violating the provisions of this section shall, upon conviction, be subject to a fine of not more than one thousand dollars ($1,000) or to imprisonment for not more than one year, or both, and shall be removed from office. The Commission shall refer any allegation of a violation of this section to the appropriate state enforcement authority or United States Attorney.\n\t\t\t§ 16. Subpoena, hearings, and judicial review.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"a"},"58":{"id":1330368,"text":"The Commission is hereby authorized and empowered by its members and its properly designated officers to administer oaths and issue subpoenas throughout all signatory states to compel the attendance of witnesses and the giving of testimony and the production of other evidence.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"c","next_prefix":"b"},"59":{"id":1330369,"text":"Any handler subject to an order may file a written petition with the Commission stating that any order or any provision of any such order or any obligation imposed in connection therewith is not in accordance with law and praying for a modification thereof or to be exempted therefrom. The handler shall thereupon be given an opportunity for a hearing upon such petition, in accordance with regulations made by the Commission. After such hearing, the Commission shall make a ruling upon the prayer of such petition which shall be final, if in accordance with law.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"60":{"id":1330370,"text":"The district courts of the United States in any district in which the handler is an inhabitant, or has his or her principal place of business, are hereby vested with jurisdiction to review such ruling, provided a complaint for that purpose is filed within 30 days from the date of the entry of the ruling. Service of process in these proceedings may be had upon the Commission by delivering to it a copy of the complaint. If the court determines that the ruling is not in accordance with law, it shall remand such proceedings to the Commission with directions either (i) to make such ruling as the court shall determine to be in accordance with law, or (ii) to take such further proceedings as, in its opinion, the law requires. The pendency of proceedings instituted pursuant to this subdivision shall not impede, hinder, or delay the Commission from obtaining relief pursuant to § 17. Any proceedings brought pursuant to § 17, except where brought by way of counterclaim in proceedings instituted pursuant to this section, shall abate whenever a final decree has been rendered in proceedings between the same parties, and covering the same subject matter, instituted pursuant to this section.\n\t\t\t§ 17. Enforcement with respect to handlers.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"a"},"61":{"id":1330371,"text":"Any violation by a handler of the provisions of regulation establishing an over-order price or a commission marketing order, or other regulations adopted pursuant to this compact shall:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"c","next_prefix":"a1"},"62":{"id":1330372,"text":"Constitute a violation of the laws of each of the signatory states. Such violation shall render the violator subject to a civil penalty in an amount as may be prescribed by the laws of each of the participating states, recoverable in any state or federal court of competent jurisdiction. Each day such violation continues shall constitute a separate violation.","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"63":{"id":1330373,"text":"Constitute grounds for the revocation of license or permit to engage in the milk business under the applicable laws of the participating states.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"b"},"64":{"id":1330374,"text":"With respect to handlers, the Commission shall enforce the provisions of this compact, regulations establishing an over-order price, a commission marketing order or other regulations adopted hereunder by:","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a2","next_prefix":"b1"},"65":{"id":1330375,"text":"Commencing an action for legal or equitable relief brought in the name of the Commission in any state or federal court of competent jurisdiction; or","type":"section","prefixes":["b","1"],"prefix":"1","entire_prefix":"b1","prefix_anchor":"b1","level":2,"prior_prefix":"b","next_prefix":"b2"},"66":{"id":1330376,"text":"Referral to the state agency for enforcement by judicial or administrative remedy with the agreement of the appropriate state agency of a participating state.","type":"section","prefixes":["b","2"],"prefix":"2","entire_prefix":"b2","prefix_anchor":"b2","level":2,"prior_prefix":"b1","next_prefix":"c"},"67":{"id":1330377,"text":"With respect to handlers, the Commission may bring an action for injunction to enforce the provisions of this compact or the order or regulations adopted thereunder without being compelled to allege or prove that an adequate remedy of law does not exist.\n\t\t\tARTICLE VII. Finance.\t\t\t§ 18. Finance of start-up and regular costs.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b2","next_prefix":"a"},"68":{"id":1330378,"text":"To provide for its start-up costs, the Commission may borrow money pursuant to its general power under § 6, subsection (d), subdivision 4. In order to finance the cost of administration and enforcement of this compact, including payback of start-up costs, the Commission may collect an assessment from each handler who purchases milk from producers within the region. If imposed, this assessment shall be collected on a monthly basis for up to one year from the date the Commission convenes, in an amount not to exceed $.015 per hundred weight of milk purchased from producers during the period of the assessment. The initial assessment may apply to the projected purchases of handlers for the two-month period following the date the Commission convenes. In addition, if regulations establishing an over-order price or a compact marketing order are adopted, they may include an assessment for the specific purpose of their administration. These regulations shall provide for establishment of a reserve for the Commission’s ongoing operating expenses.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"c","next_prefix":"b"},"69":{"id":1330379,"text":"The Commission shall not pledge the credit of any participating state or of the United States. Notes issued by the Commission and all other financial obligations incurred by it, shall be its sole responsibility and no participating state or the United States shall be liable therefor.\n\t\t\t§ 19. Audit and accounts.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"a"},"70":{"id":1330380,"text":"The Commission shall keep accurate accounts of all receipts and disbursements, which shall be subject to the audit and accounting procedures established under its rules. In addition, all receipts and disbursements of funds handled by the Commission shall be audited yearly by a qualified public accountant and the report of the audit shall be included in and become part of the annual report of the Commission.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"prior_prefix":"b","next_prefix":"b"},"71":{"id":1330381,"text":"The accounts of the Commission shall be open at any reasonable time for inspection by duly constituted officers of the participating states and by any persons authorized by the Commission.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"72":{"id":1330382,"text":"Nothing contained in this Article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any participating state or of the United States.\n\t\t\tARTICLE VIII. Entry into Force; Additional Members and Withdrawal.\t\t\t§ 20. Entry into force; additional members.\t\t\tThe compact shall enter into force effective when enacted into law by any three states of the group of states composed of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia and when the consent of Congress has been obtained.\t\t\t§ 21. Withdrawal from compact.\t\t\tAny participating state may withdraw from this compact by enacting a statute repealing the same, but no such withdrawal shall take effect until one year after notice in writing of the withdrawal is given to the Commission and the governors of all the participating states. No withdrawal shall affect any liability already incurred by or chargeable to a participating state prior to the time of such withdrawal.\t\t\t§ 22. Severability.\t\t\tIf any part or provision of this compact is adjudged invalid by any court, such judgment shall be confined in its operation to the part or provision directly involved in the controversy in which such judgment shall have been rendered and shall not affect or impair the validity of the remainder of this compact. In the event Congress consents to this compact subject to conditions, said conditions shall not impair the validity of this compact when said conditions are accepted by three or more compacting states. A compact state may accept the conditions of Congress by implementation of this compact.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b"}},"ancestry":[{"id":51151,"edition_id":2,"name":"Southern Dairy Compact","identifier":"33","label":"chapter","depth":3,"order_by":1,"parent_id":51149,"metadata":{"child_laws":4,"child_structures":0},"date_created":"2026-08-02 02:38:12","date_modified":"2026-08-02 12:27:34","permalink":{"id":1422549,"object_type":"structure","relational_id":51151,"identifier":"33","token":"3.2\/III\/33","url":"\/3.2\/III\/33\/","edition_id":2,"permalink":0,"preferred":1}},{"id":51149,"edition_id":2,"name":"Production and Sale of Agricultural Products","identifier":"III","label":"subtitle","depth":2,"order_by":4,"parent_id":51103,"metadata":{"child_laws":398,"child_structures":44},"date_created":"2026-08-02 02:38:09","date_modified":"2026-08-02 12:27:34","permalink":{"id":1422445,"object_type":"structure","relational_id":51149,"identifier":"III","token":"3.2\/III","url":"\/3.2\/III\/","edition_id":2,"permalink":0,"preferred":1}},{"id":51103,"edition_id":2,"name":"Agriculture, Animal Care, and Food","identifier":"3.2","label":"title","depth":1,"order_by":5,"parent_id":null,"metadata":{"child_laws":1194,"child_structures":151},"date_created":"2026-08-02 02:37:33","date_modified":"2026-08-02 12:27:27","permalink":{"id":1420941,"object_type":"structure","relational_id":51103,"identifier":"3.2","token":"3.2","url":"\/3.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":357535,"structure_id":51151,"section_number":"3.2-3300","catch_line":"Southern Dairy Compact; form of compact","url":"\/3.2-3300\/","token":"3.2\/III\/33\/3.2-3300","metadata":false},{"id":357536,"structure_id":51151,"section_number":"3.2-3301","catch_line":"Southern Dairy Compact Commission members","url":"\/3.2-3301\/","token":"3.2\/III\/33\/3.2-3301","metadata":false},{"id":357537,"structure_id":51151,"section_number":"3.2-3302","catch_line":"Cooperation of departments, agencies, and officers of the Commonwealth","url":"\/3.2-3302\/","token":"3.2\/III\/33\/3.2-3302","metadata":false},{"id":357538,"structure_id":51151,"section_number":"3.2-3303","catch_line":"Milk Commission powers preserved","url":"\/3.2-3303\/","token":"3.2\/III\/33\/3.2-3303","metadata":false}],"next_section":{"id":357536,"structure_id":51151,"section_number":"3.2-3301","catch_line":"Southern Dairy Compact Commission members","url":"\/3.2-3301\/","token":"3.2\/III\/33\/3.2-3301","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/3.2-3300\/","history_text":"

This law was first created in 1998. The record of its establishment is cataloged in chapter 706<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2008, chapter 860<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":1422551,"object_type":"law","relational_id":357535,"identifier":"3.2-3300","token":"3.2\/III\/33\/3.2-3300","url":"\/3.2-3300\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/3.2-3300\/","token":"3.2\/III\/33\/3.2-3300","dublin_core":{"Title":"Southern Dairy Compact; form of compact","Type":"Text","Format":"text\/html","Identifier":"\u00a7 3.2-3300","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The Southern Dairy Compact is enacted into law<\/span> and entered into with all other jurisdictions<\/span> legally joining therein in the form substantially as follows:

\t\tARTICLE I. Statement of Purpose, Findings<\/span>, and Declaration of Policy.

\t\t\u00a7 1. Statement of purpose, findings<\/span>, and declaration of policy.

\t\tThe purpose of this compact is to recognize the interstate character of the southern dairy industry and the prerogative of the states under the United States Constitution to form an interstate commission for the southern region<\/span>. The mission of the Commission is to take such steps as are necessary to assure the continued viability of dairy farming in the South, and to assure consumers of an adequate, local supply of pure and wholesome milk.

\t\tThe participating states<\/span> find and declare that the dairy industry is an essential agricultural activity of the South. Dairy farms, and associated suppliers, marketers, processors, and retailers, are an integral component of the region<\/span>’s economy. Their ability to provide a stable, local supply of pure, wholesome milk is a matter of great importance to the health and welfare of the region<\/span>.

\t\tThe participating states<\/span> further find that dairy farms are essential, and they are an integral part of the region<\/span>’s rural communities. The farms preserve land for agricultural purposes and provide needed economic stimuli for rural communities.

\t\tBy entering into this compact, the participating states<\/span> affirm<\/span> that their ability to regulate the price that southern dairy farmers receive for their product is essential to the public interest. Assurance of a fair and equitable<\/span> price for dairy farmers ensures their ability to provide milk to the market and the vitality of the southern dairy industry, with all the associated benefits.

\t\tRecent dramatic price fluctuations, with a pronounced downward trend, threaten the viability and stability of the southern dairy region<\/span>. Historically, individual state regulatory action had been an effective emergency remedy available to farmers confronting a distressed market. The system of federal orders<\/span>, implemented by the Agricultural Marketing Agreement Act of 1937, establishes only minimum prices paid to producers for raw milk, without preempting the power of states to regulate milk prices above the minimum levels so established.

\t\tIn today’s regional dairy marketplace, cooperative, rather than individual state action is needed to more effectively address the market disarray. Under our constitutional system, properly authorized states acting cooperatively may exercise more power to regulate interstate commerce than they may assert individually without such authority. For this reason, the participating states<\/span> invoke their authority to act in common agreement, with the consent of Congress, under the compact clause of the Constitution.

\t\tIn establishing their constitutional regulatory authority over the region<\/span>’s fluid milk market by this compact, the participating states<\/span> declare their purpose that this compact neither displace the system of federal orders<\/span> nor encourage the merging of federal orders<\/span>. Specific provisions of the compact itself set forth this basic principle.

\t\tDesigned as a flexible mechanism able to adjust to changes in a regulated marketplace, the compact also contains a contingency provision should the system of federal orders<\/span> be discontinued. In that event, the interstate commission may regulate the marketplace in lieu of the system of federal orders<\/span>. This contingent authority does not anticipate such a change, however, and should not be so construed. It is only provided should developments in the market other than establishment of this compact result in discontinuance of the system of federal orders<\/span>.

\t\tARTICLE II. Definitions and Rules of Construction.

\t\t\u00a7 2. Definitions.

\t\tFor the purposes of this compact, and of any supplemental or concurring legislation enacted pursuant thereto, except as may be otherwise required by the context:

\t\t“Class I milk<\/span>” means milk disposed of in fluid form or as a fluid milk product, subject to further definition in accordance with the principles expressed in subsection (b) of \u00a7 3.

\t\t“Commission” means the Southern Dairy Compact Commission established by this compact.

\t\t“Commission marketing order<\/span>” means regulations adopted by the Commission pursuant to \u00a7\u00a7 9 and 10 of this compact in place of a terminated federal marketing order or state dairy regulation<\/span>. Such order may apply throughout the region<\/span> or in any part or parts thereof as defined in the regulations of the Commission. Such order may establish minimum prices for any or all classes of milk.

\t\t“Compact” means this interstate compact.

\t\t“Compact over-order price<\/span>” means a minimum price required to be paid to producers for Class I milk<\/span> established by the Commission in regulations adopted pursuant to \u00a7\u00a7 9 and 10 of this compact, which is above the price established in federal marketing orders<\/span> or by state farm price regulation in the regulated area<\/span>. Such price may apply throughout the region<\/span> or in any part or parts thereof as defined in the regulations of the Commission.

\t\t“Milk” means the lacteal secretion of cows and includes all skim, butterfat, or other constituents obtained from separation or any other process. The term is used in its broadest sense and may be further defined by the Commission for regulatory purposes.

\t\t“Partially regulated plant<\/span>” means a milk plant not located in a regulated area<\/span> but having Class I distribution within such area. Commission regulations may exempt plants having such distribution or receipts in amounts less than the limits defined therein.

\t\t“Participating state<\/span>” means a state which has become a party<\/span> to this compact by the enactment of concurring legislation.

\t\t“Pool plant<\/span>” means any milk plant located in a regulated area<\/span>.

\t\t“Region<\/span>” means the territorial limits of the states which are parties to this compact.

\t\t“Regulated area<\/span>” means any area within the region<\/span> governed by and defined in regulations establishing a compact over-order price<\/span> or commission marketing order<\/span>.

\t\t“State dairy regulation<\/span>” means any state regulation of dairy prices and associated assessments, whether by statute<\/span>, marketing order, or otherwise.

\t\t\u00a7 3. Rules of construction.<\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> This compact shall not be construed to displace existing federal milk marketing orders or state dairy regulation<\/span> in the region<\/span> but to supplement them. In the event some or all federal orders in the region<\/span> are discontinued, the compact shall be construed to provide the Commission the option to replace them with one or more commission marketing orders<\/span> pursuant to this compact. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> This compact shall be construed liberally in order to achieve the purposes and intent<\/span> enunciated in § 1. It is the intent<\/span> of this compact to establish a basic structure by which the Commission may achieve those purposes through the application, adaptation, and development of the regulatory techniques historically associated with milk marketing and to afford the Commission broad flexibility to devise regulatory mechanisms to achieve the purposes of this compact. In accordance with this intent<\/span>, the technical terms which are associated with market order regulation and which have acquired commonly understood general meanings are not defined herein but the Commission may further define the terms used in this compact and develop additional concepts and define additional terms as it may find appropriate to achieve its purposes.\n\t\t\tARTICLE III. Commission Established.

\t\t\t§ 4. Commission established.

\t\t\tThere is hereby created a commission to administer the compact, composed of delegations from each state in the region<\/span>. The Commission shall be known as the Southern Dairy Compact Commission. A delegation shall include not less than three nor more than five persons. Each delegation shall include at least one dairy farmer who is engaged in the production of milk at the time of appointment or reappointment, and one consumer representative. Delegation members shall be residents and voters of, and subject to such confirmation process as is provided for in, the appointing state. Delegation members shall serve no more than three consecutive terms with no single term of more than four years, and be subject to removal for cause. In all other respects, delegation members shall serve in accordance with the laws<\/span> of the state represented. The compensation, if any, of the members of a state delegation shall be determined and paid by each state, but their expenses shall be paid by the Commission.

\t\t\t§ 5. Voting requirements.

\t\t\tAll actions taken by the Commission, except for the establishment or termination of an over-order price or commission marketing order<\/span>, and the adoption, amendment, or rescission of the Commission’s bylaws, shall be by majority vote of the delegations present. Each state delegation shall be entitled to one vote in the conduct of the Commission’s affairs. Establishment or termination of an over-order price or commission marketing order<\/span> shall require at least a two-thirds vote of the delegations present. The establishment of a regulated area<\/span> that covers all or part of a participating state<\/span> shall require also the affirmative vote of that state’s delegation. A majority of the delegations from the participating states<\/span> shall constitute a quorum for the conduct of the Commission’s business.

\t\t\t§ 6. Administration and management. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> The Commission shall elect annually from among the members of the participating state<\/span> delegations a chairperson, a vice-chairperson, and a treasurer. The Commission shall appoint an executive director and fix his or her duties and compensation. The executive director shall serve at the pleasure of the Commission, and, together with the treasurer, shall be bonded in an amount determined by the Commission. The Commission may establish through its bylaws an executive committee composed of one member elected by each delegation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> The Commission shall adopt bylaws for the conduct of its business by a two-thirds vote and shall have the power by the same vote to amend<\/span> and rescind these bylaws. The Commission shall publish its bylaws in convenient form with the appropriate agency or officer in each of the participating states<\/span>. The bylaws shall provide for appropriate notice to the delegations of all Commission meetings and hearings<\/span> and of the business to be transacted at such meetings or hearings<\/span>. Notice also shall be given to other agencies or officers of participating states<\/span> as provided by the laws<\/span> of those states. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> The Commission shall file an annual report with the Secretary of Agriculture of the United States, and with each of the participating states<\/span> by submitting copies to the Governor, both houses of the legislature, and the head of the state department<\/span> having responsibilities for agriculture. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> In addition to the powers and duties elsewhere prescribed in this compact, the Commission may engage in all of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Sue and be sued in any state or federal court<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Have a seal and alter the same at pleasure. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Acquire, hold, and dispose of real and personal property by gift, purchase, lease, license, or other similar manner, for its corporate purposes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Borrow money and to issue<\/span> notes, to provide for the rights of the holders thereof, and to pledge the revenue of the Commission as security therefor, subject to the provisions of § 18 of this compact. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Appoint such officers, agents, and employees as it may deem necessary, prescribe their powers, duties, and qualifications. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Create and abolish such offices, employments, and positions as it deems necessary for the purposes of the compact and provide for the removal, term, tenure, compensation, fringe benefits, pension, and retirement rights of its officers and employees. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Retain personal services on a contract<\/span> basis.\n\t\t\t\t§ 7. Rule-making power.

\t\t\t\tIn addition to the power to promulgate a compact over-order price<\/span> or commission marketing orders<\/span> as provided by this compact, the Commission is further empowered to make and enforce such additional rules and regulations as it deems necessary to implement any provisions of this compact, or to effectuate in any other respect the purposes of this compact.

\t\t\t\tARTICLE IV. Powers of the Commission.

\t\t\t\t§ 8. Powers to promote regulatory uniformity, simplicity, and interstate cooperation.

\t\t\t\tThe Commission may: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Investigate or provide for investigations or research projects designed to review the existing laws<\/span> and regulations of the participating states<\/span>, to consider their administration and costs, and to measure their impact on the production and marketing of milk and their effects on the shipment of milk and milk products within the region<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Study and recommend to the participating states<\/span> joint or cooperative programs for the administration of the dairy marketing laws<\/span> and regulations and to prepare estimates of cost savings and benefits of such programs. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Encourage the harmonious relationships between the various elements in the industry for the solution of their material<\/span> problems. Conduct symposia or conferences designed to improve industry relations, or a better understanding of problems. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Prepare and release periodic reports on activities and results of the Commission’s efforts to the participating states<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Review the existing marketing system for milk and milk products and recommend changes in the existing structure for assembly and distribution of milk which may assist, improve, or promote more efficient assembly and distribution of milk. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Investigate costs and charges for producing, hauling, handling, processing, distributing, selling, and for all other services, performed with respect to milk. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Examine current economic forces affecting producers, probable trends in production and consumption, the level of dairy farm prices in relation to costs, the financial conditions of dairy farmers, and the need for an emergency order to relieve critical conditions on dairy farms.\n\t\t\t\t§ 9. Equitable<\/span> farm prices. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> The powers granted in this section and § 10 shall apply only to the establishment of a compact over-order price<\/span>, so long as federal milk marketing orders remain in effect in the region<\/span>. In the event that any or all such orders are terminated, this article authorizes the Commission to establish one or more commission marketing orders<\/span>, as herein provided, in the region<\/span> or parts thereof as defined in the order. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> A compact over-order price<\/span> established pursuant to this section shall apply only to Class I milk<\/span>. Such compact over-order price<\/span> shall not exceed one dollar and fifty cents ($1.50) per gallon at Atlanta, Georgia, however, this compact over-order price<\/span> shall be adjusted upward or downward at other locations in the region<\/span> to reflect differences in minimum federal order prices. Beginning in 1990, and using that year as a base, the foregoing one dollar and fifty cents ($1.50) per gallon maximum shall be adjusted annually by the rate of change in the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States Department<\/span> of Labor. For purposes of the pooling and equalization of an over-order price, the value of milk used in other use classifications shall be calculated at the appropriate class price established pursuant to the applicable federal order or state dairy regulation<\/span> and the value of unregulated milk shall be calculated in relation to the nearest prevailing class price in accordance with and subject to such adjustments as the Commission may prescribe in regulations. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> A commission marketing order<\/span> shall apply to all classes and uses of milk. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> The Commission may establish a compact over-order price<\/span> for milk to be paid by pool plants<\/span> and partially regulated plants<\/span>. The Commission also may establish a compact over-order price<\/span> to be paid by all other handlers receiving milk from producers located in a regulated area<\/span>. This price shall be established either as a compact over-order price<\/span> or by one or more commission marketing orders<\/span>. Whenever such a price has been established by either type of regulation, the legal obligation to pay such price shall be determined solely by the terms and purpose of the regulation without regard to the situs of the transfer of title, possession<\/span>, or any other factors not related to the purposes of the regulation and this compact. Producer-handlers as defined in an applicable federal market order shall not be subject to a compact over-order price<\/span>. The Commission shall provide for similar treatment of producer-handlers under commission marketing orders<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> In determining the price, the Commission shall consider the balance between production and consumption of milk and milk products in the regulated area<\/span>, the costs of production including, but not limited to, the price of feed, the cost of labor including the reasonable value of the producer’s own labor and management, machinery expense and interest expense, the prevailing price for milk outside the regulated area<\/span>, the purchasing power of the public, and the price necessary to yield a reasonable return to the producer and distributor. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> When establishing a compact over-order price<\/span>, the Commission shall take such other action as is necessary and feasible to help ensure that the over-order price does not cause or compensate producers so as to generate local production of milk in excess of those quantities necessary to assure consumers of an adequate supply for fluid purposes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

g.<\/span> The Commission shall whenever possible enter into agreements with state or federal agencies for exchange of information or services for the purpose of reducing regulatory burden and cost of administering the compact. The Commission may reimburse other agencies for the reasonable cost of providing these services.\n\t\t\t\u00a7 10. Optional provisions for pricing order.

\t\t\tRegulations establishing a compact over-order price<\/span> or a commission marketing order<\/span> may contain, but shall not be limited to, any of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Provisions classifying milk in accordance with the form in which or purpose for which it is used, or creating a flat pricing program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> With respect to a commission marketing order<\/span> only, provisions establishing or providing a method for establishing separate minimum prices for each use classification prescribed by the Commission, or a single minimum price for milk purchased from producers or associations of producers. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> With respect to an over-order minimum price, provisions establishing or providing a method for establishing such minimum price for Class I milk<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Provisions for establishing either an over-order price or a commission marketing order<\/span> may make use of any reasonable method for establishing such price or prices including flat pricing and formula pricing. Provision may also be made for location adjustments, zone differentials, and competitive credits with respect to regulated handlers who market outside the regulated area<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Provisions for the payment to all producers and associations of producers delivering milk to all handlers of uniform prices for all milk so delivered, irrespective of the uses made of such milk by the individual handler to whom it is delivered, or for the payment of producers delivering milk to the same handler of uniform prices for all milk delivered by them.\n\t\t\t\ta. With respect to regulations establishing a compact over-order price<\/span>, the Commission may establish one equalization pool within the regulated area<\/span> for the sole purpose of equalizing returns to producers throughout the regulated area<\/span>.

\t\t\t\tb. With respect to any commission marketing order<\/span>, as defined in § 2, subdivision (3), which replaces one or more terminated federal orders or state dairy regulation<\/span>, the marketing area of now separate state or federal orders shall not be merged without the affirmative consent of each state, voting through its delegation, which is partly or wholly included within any such new marketing area. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Provisions requiring persons who bring Class I milk<\/span> into the regulated area<\/span> to make compensatory payments with respect to all such milk to the extent necessary to equalize the cost of milk purchased by handlers subject to a compact over-order price<\/span> or commission marketing order<\/span>. No such provisions shall discriminate against milk producers outside the regulated area<\/span>. The provisions for compensatory payments may require payment of the difference between the Class I price required to be paid for such milk in the state of production by a federal milk marketing order or state dairy regulation<\/span> and the Class I price established by the compact over-order price<\/span> or commission marketing order<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Provisions specially governing the pricing and pooling of milk handled by partially regulated plants<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Provisions requiring that the account of any person regulated under the compact over-order price<\/span> shall be adjusted for any payments made to or received by such persons with respect to a producer settlement<\/span> fund of any federal or state milk marketing order or other state dairy regulation<\/span> within the regulated area<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Provision requiring the payment by handlers of an assessment to cover the costs of the administration and enforcement of such order pursuant to subsection (a) of § 18 of Article VII. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Provisions for reimbursement to participants of the Women, Infants and Children Special Supplemental Food Program of the United States Child Nutrition Act of 1966. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> Other provisions and requirements as the Commission may find are necessary or appropriate to effectuate the purposes of this compact and to provide for the payment of fair and equitable<\/span> minimum prices to producers.\n\t\t\t\tARTICLE V. Rule-Making Procedure.

\t\t\t\t§ 11. Rule-making procedure.

\t\t\t\tBefore promulgation of any regulations establishing a compact over-order price<\/span> or commission marketing order<\/span>, including any provision with respect to milk supply under subsection (f) of § 9, or amendment thereof, as provided in Article IV, the Commission shall conduct an informal rule-making proceeding to provide interested persons with an opportunity to present data and views. Such rule-making proceeding shall be governed by § 4 of the Federal Administrative Procedure Act, as amended (5 U.S.C. § 553). In addition, the Commission shall, to the extent practicable, publish notice of rule-making proceedings in the official register of each participating state<\/span>. Before the initial adoption of regulations establishing a compact over-order price<\/span> or a commission marketing order<\/span> and thereafter before any amendment with regard to prices or assessments, the Commission shall hold a public hearing<\/span>. The Commission may commence a rule-making proceeding on its own initiative or may in its sole discretion act upon the petition<\/span> of any person including individual milk producers, any organization of milk producers or handlers, general farm organizations, consumer or public interest groups, and local, state or federal officials.

\t\t\t\t§ 12. Findings<\/span> and referendum<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> In addition to the concise general statement of basis and purpose required by \u00a7 4(b) of the Federal Administrative Procedure Act, as amended (5 U.S.C. \u00a7 553 (c)), the Commission shall make findings<\/span> of fact<\/span> with respect to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Whether the public interest will be served by the establishment of minimum milk prices to dairy farmers under Article IV. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> What level of prices will assure that producers receive a price sufficient to cover their costs of production and will elicit an adequate supply of milk for the inhabitants of the regulated area<\/span> and for manufacturing purposes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Whether the major provisions of the order, other than those fixing minimum milk prices, are in the public interest and are reasonably designed to achieve the purposes of the order. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Whether the terms of the proposed regional order or amendment are approved by producers as provided in § 13.\n\t\t\t\t§ 13. Producer referendum<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> For the purpose of ascertaining whether the issuance or amendment of regulations establishing a compact over-order price<\/span> or a commission marketing order<\/span>, including any provision with respect to milk supply under subsection (f) of § 9, is approved by producers, the Commission shall conduct a referendum<\/span> among producers. The referendum<\/span> shall be held in a timely manner, as determined by regulation of the Commission. The terms and conditions of the proposed order or amendment shall be described by the Commission in the ballot used in the conduct of the referendum<\/span>, but the nature, content, or extent of such description shall not be a basis for attacking the legality of the order or any action relating thereto. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> An order or amendment shall be deemed approved by producers if the Commission determines that it is approved by at least two-thirds of the voting producers who, during a representative period determined by the Commission, have been engaged in the production of milk the price of which would be regulated under the proposed order or amendment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> For purposes of any referendum<\/span>, the Commission shall consider the approval or disapproval by any cooperative association of producers, qualified under the provisions of the Act of Congress of February 18, 1922, as amended, known as the Capper-Volstead Act, bona fide engaged in marketing milk, or in rendering services for or advancing the interests of producers of such commodity, as the approval or disapproval of the producers who are members or stockholders in, or under contract<\/span> with, such cooperative association of producers, except as provided in subdivision (1) of this subsection and subject to the provisions of subdivisions (2) through (5) of this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> No cooperative that has been formed to act as a common marketing agency for both cooperatives and individual producers shall be qualified to block vote for either. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any cooperative that is qualified to block vote shall, before submitting its approval or disapproval in any referendum<\/span>, give prior written notice to each of its members as to whether and how it intends to cast its vote. The notice shall be given in a timely manner as established, and in the form prescribed, by the Commission. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any producer may obtain a ballot from the Commission in order to register approval or disapproval of the proposed order. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> A producer who is a member of a cooperative which has provided notice of its intent<\/span> to approve or not to approve a proposed order, and who obtains a ballot and with such ballot expresses his or her approval or disapproval of the proposed order, shall notify the Commission as to the name of the cooperative of which he or she is a member, and the Commission shall remove such producer’s name from the list certified by such cooperative with its corporate vote. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> In order to ensure that all milk producers are informed regarding a proposed order, the Commission shall notify all milk producers that an order is being considered and that each producer may register his or her approval or disapproval with the Commission either directly or through his or her cooperative.\n\t\t\t\t§ 14. Termination of over-order price or marketing order. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> The Commission shall terminate any regulations establishing an over-order price or commission marketing order<\/span> issued under this Article whenever it finds that such order or price obstructs or does not tend to effectuate the declared policy of this compact. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> The Commission shall terminate any regulations establishing an over-order price or a commission marketing order<\/span> issued under this Article whenever it finds that such termination is favored by a majority of the producers who, during a representative period determined by the Commission, have been engaged in the production of milk, the price of which is regulated by such order; but such termination shall be effective only if announced on or before such date as may be specified in such marketing agreement or order. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> The termination or suspension of any order or provision thereof, shall not be considered an order within the meaning of this Article and shall require no hearing<\/span>, but shall comply with the requirements for informal rule making prescribed by § 4 of the Federal Administrative Procedure Act, as amended (5 U.S.C. § 553).\n\t\t\tARTICLE VI. Enforcement.

\t\t\t§ 15. Records, reports, access to premises. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> The Commission may by rule and regulation prescribe record keeping and reporting requirements for all regulated persons. For purposes of the administration and enforcement of this compact, the Commission may examine the books and records of any regulated person relating to his or her milk business and for that purpose, the Commission’s properly designated officers, employees, or agents shall have full access during normal business hours to the premises and records of all regulated persons. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Information furnished to or acquired by the Commission officers, employees, or its agents pursuant to this section shall be confidential and not subject to disclosure except to the extent that the Commission deems disclosure to be necessary in any administrative or judicial proceeding involving the administration or enforcement of this compact, an over-order price, a compact marketing order, or other regulations of the Commission. The Commission may adopt rules further defining the confidentiality of information pursuant to this section. Nothing in this section shall be deemed to prohibit (i) the issuance of general statements based upon the reports of a number of handlers, which do not identify the information furnished by any person, or (ii) the publication by direction of the Commission of the name of any person violating any regulation of the Commission, together with a statement of the particular provisions violated by such person. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> No officer, employee, or agent of the Commission shall intentionally disclose information, by inference or otherwise, that is made confidential pursuant to this section. Any person violating the provisions of this section shall, upon conviction<\/span>, be subject to a fine of not more than one thousand dollars ($1,000) or to imprisonment for not more than one year, or both, and shall be removed from office. The Commission shall refer any allegation<\/span> of a violation of this section to the appropriate state enforcement authority or United States Attorney.\n\t\t\t§ 16. Subpoena<\/span>, hearings<\/span>, and judicial review. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> The Commission is hereby authorized and empowered by its members and its properly designated officers to administer oaths<\/span> and issue<\/span> subpoenas<\/span> throughout all signatory states to compel the attendance of witnesses and the giving of testimony<\/span> and the production of other evidence<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Any handler subject to an order may file a written petition<\/span> with the Commission stating that any order or any provision of any such order or any obligation imposed in connection therewith is not in accordance with law<\/span> and praying for a modification thereof or to be exempted therefrom. The handler shall thereupon be given an opportunity for a hearing<\/span> upon such petition<\/span>, in accordance with regulations made by the Commission. After such hearing<\/span>, the Commission shall make a ruling upon the prayer of such petition<\/span> which shall be final, if in accordance with law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> The district courts<\/span> of the United States in any district in which the handler is an inhabitant, or has his or her principal place of business, are hereby vested with jurisdiction<\/span> to review such ruling, provided a complaint for that purpose is filed within 30 days from the date of the entry of the ruling. Service of process<\/span> in these proceedings may be had upon the Commission by delivering to it a copy of the complaint. If the court<\/span> determines that the ruling is not in accordance with law<\/span>, it shall remand<\/span> such proceedings to the Commission with directions either (i) to make such ruling as the court<\/span> shall determine to be in accordance with law<\/span>, or (ii) to take such further proceedings as, in its opinion<\/span>, the law<\/span> requires. The pendency of proceedings instituted pursuant to this subdivision shall not impede, hinder, or delay the Commission from obtaining relief pursuant to § 17. Any proceedings brought pursuant to § 17, except where brought by way of counterclaim<\/span> in proceedings instituted pursuant to this section, shall abate whenever a final decree<\/span> has been rendered in proceedings between the same parties, and covering the same subject matter, instituted pursuant to this section.\n\t\t\t§ 17. Enforcement with respect to handlers. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> Any violation by a handler of the provisions of regulation establishing an over-order price or a commission marketing order<\/span>, or other regulations adopted pursuant to this compact shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Constitute a violation of the laws<\/span> of each of the signatory states. Such violation shall render the violator subject to a civil penalty<\/span> in an amount as may be prescribed by the laws<\/span> of each of the participating states<\/span>, recoverable in any state or federal court<\/span> of competent jurisdiction<\/span>. Each day such violation continues shall constitute a separate violation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Constitute grounds for the revocation<\/span> of license or permit to engage in the milk business under the applicable laws<\/span> of the participating states<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> With respect to handlers, the Commission shall enforce the provisions of this compact, regulations establishing an over-order price, a commission marketing order<\/span> or other regulations adopted hereunder by: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Commencing an action for legal or equitable<\/span> relief brought in the name of the Commission in any state or federal court<\/span> of competent jurisdiction<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Referral to the state agency for enforcement by judicial or administrative remedy with the agreement of the appropriate state agency of a participating state<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> With respect to handlers, the Commission may bring an action for injunction<\/span> to enforce the provisions of this compact or the order or regulations adopted thereunder without being compelled to allege or prove that an adequate remedy of law<\/span> does not exist.\n\t\t\tARTICLE VII. Finance.

\t\t\t§ 18. Finance of start-up and regular costs. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> To provide for its start-up costs, the Commission may borrow money pursuant to its general power under § 6, subsection (d), subdivision 4. In order to finance the cost of administration and enforcement of this compact, including payback of start-up costs, the Commission may collect an assessment from each handler who purchases milk from producers within the region<\/span>. If imposed, this assessment shall be collected on a monthly basis for up to one year from the date the Commission convenes, in an amount not to exceed $.015 per hundred weight of milk purchased from producers during the period of the assessment. The initial assessment may apply to the projected purchases of handlers for the two-month period following the date the Commission convenes. In addition, if regulations establishing an over-order price or a compact marketing order are adopted, they may include an assessment for the specific purpose of their administration. These regulations shall provide for establishment of a reserve for the Commission’s ongoing operating expenses. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> The Commission shall not pledge the credit of any participating state<\/span> or of the United States. Notes issued by the Commission and all other financial obligations incurred by it, shall be its sole responsibility and no participating state<\/span> or the United States shall be liable therefor.\n\t\t\t§ 19. Audit and accounts. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> The Commission shall keep accurate accounts of all receipts and disbursements, which shall be subject to the audit and accounting procedures established under its rules. In addition, all receipts and disbursements of funds handled by the Commission shall be audited yearly by a qualified public accountant and the report of the audit shall be included in and become part of the annual report of the Commission. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> The accounts of the Commission shall be open at any reasonable time for inspection by duly constituted officers of the participating states<\/span> and by any persons authorized by the Commission. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Nothing contained in this Article shall be construed to prevent commission compliance with laws<\/span> relating to audit or inspection of accounts by or on behalf of any participating state<\/span> or of the United States.\n\t\t\tARTICLE VIII. Entry into Force; Additional Members and Withdrawal.

\t\t\t§ 20. Entry into force; additional members.

\t\t\tThe compact shall enter into force effective when enacted into law<\/span> by any three states of the group of states composed of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia and when the consent of Congress has been obtained.

\t\t\t§ 21. Withdrawal from compact.

\t\t\tAny participating state<\/span> may withdraw from this compact by enacting a statute<\/span> repealing the same, but no such withdrawal shall take effect until one year after notice in writing of the withdrawal is given to the Commission and the governors of all the participating states<\/span>. No withdrawal shall affect any liability already incurred by or chargeable to a participating state<\/span> prior to the time of such withdrawal.

\t\t\t§ 22. Severability.

\t\t\tIf any part or provision of this compact is adjudged invalid by any court<\/span>, such judgment<\/span> shall be confined in its operation to the part or provision directly involved in the controversy in which such judgment<\/span> shall have been rendered and shall not affect or impair the validity of the remainder of this compact. In the event Congress consents to this compact subject to conditions, said conditions shall not impair the validity of this compact when said conditions are accepted by three or more compacting states. A compact state may accept the conditions of Congress by implementation of this compact. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSOUTHERN DAIRY COMPACT; FORM OF COMPACT (\u00a7 3.2-3300)\n\nThe Southern Dairy Compact is enacted into law and entered into with all other\njurisdictions legally joining therein in the form substantially as\nfollows:\t\tARTICLE I. Statement of Purpose, Findings, and Declaration of\nPolicy.\t\t\u00a7 1. Statement of purpose, findings, and declaration of policy.\t\tThe\npurpose of this compact is to recognize the interstate character of the southern\ndairy industry and the prerogative of the states under the United States\nConstitution to form an interstate commission for the southern region. The\nmission of the Commission is to take such steps as are necessary to assure the\ncontinued viability of dairy farming in the South, and to assure consumers of an\nadequate, local supply of pure and wholesome milk.\t\tThe participating states\nfind and declare that the dairy industry is an essential agricultural activity\nof the South. Dairy farms, and associated suppliers, marketers, processors, and\nretailers, are an integral component of the region’s economy. Their\nability to provide a stable, local supply of pure, wholesome milk is a matter of\ngreat importance to the health and welfare of the region.\t\tThe participating\nstates further find that dairy farms are essential, and they are an integral\npart of the region’s rural communities. The farms preserve land for\nagricultural purposes and provide needed economic stimuli for rural\ncommunities.\t\tBy entering into this compact, the participating states affirm\nthat their ability to regulate the price that southern dairy farmers receive for\ntheir product is essential to the public interest. Assurance of a fair and\nequitable price for dairy farmers ensures their ability to provide milk to the\nmarket and the vitality of the southern dairy industry, with all the associated\nbenefits.\t\tRecent dramatic price fluctuations, with a pronounced downward trend,\nthreaten the viability and stability of the southern dairy region. Historically,\nindividual state regulatory action had been an effective emergency remedy\navailable to farmers confronting a distressed market. The system of federal\norders, implemented by the Agricultural Marketing Agreement Act of 1937,\nestablishes only minimum prices paid to producers for raw milk, without\npreempting the power of states to regulate milk prices above the minimum levels\nso established.\t\tIn today’s regional dairy marketplace, cooperative,\nrather than individual state action is needed to more effectively address the\nmarket disarray. Under our constitutional system, properly authorized states\nacting cooperatively may exercise more power to regulate interstate commerce\nthan they may assert individually without such authority. For this reason, the\nparticipating states invoke their authority to act in common agreement, with the\nconsent of Congress, under the compact clause of the Constitution.\t\tIn\nestablishing their constitutional regulatory authority over the region’s\nfluid milk market by this compact, the participating states declare their\npurpose that this compact neither displace the system of federal orders nor\nencourage the merging of federal orders. Specific provisions of the compact\nitself set forth this basic principle.\t\tDesigned as a flexible mechanism able to\nadjust to changes in a regulated marketplace, the compact also contains a\ncontingency provision should the system of federal orders be discontinued. In\nthat event, the interstate commission may regulate the marketplace in lieu of\nthe system of federal orders. This contingent authority does not anticipate such\na change, however, and should not be so construed. It is only provided should\ndevelopments in the market other than establishment of this compact result in\ndiscontinuance of the system of federal orders.\t\tARTICLE II. Definitions and\nRules of Construction.\t\t\u00a7 2. Definitions.\t\tFor the purposes of this compact,\nand of any supplemental or concurring legislation enacted pursuant thereto,\nexcept as may be otherwise required by the context:\t\t“Class I milk”\nmeans milk disposed of in fluid form or as a fluid milk product, subject to\nfurther definition in accordance with the principles expressed in subsection (b)\nof \u00a7 3.\t\t“Commission” means the Southern Dairy Compact Commission\nestablished by this compact.\t\t“Commission marketing order” means\nregulations adopted by the Commission pursuant to \u00a7\u00a7 9 and 10 of this compact\nin place of a terminated federal marketing order or state dairy regulation. Such\norder may apply throughout the region or in any part or parts thereof as defined\nin the regulations of the Commission. Such order may establish minimum prices\nfor any or all classes of milk.\t\t“Compact” means this interstate\ncompact.\t\t“Compact over-order price” means a minimum price required\nto be paid to producers for Class I milk established by the Commission in\nregulations adopted pursuant to \u00a7\u00a7 9 and 10 of this compact, which is above\nthe price established in federal marketing orders or by state farm price\nregulation in the regulated area. Such price may apply throughout the region or\nin any part or parts thereof as defined in the regulations of the\nCommission.\t\t“Milk” means the lacteal secretion of cows and includes\nall skim, butterfat, or other constituents obtained from separation or any other\nprocess. The term is used in its broadest sense and may be further defined by\nthe Commission for regulatory purposes.\t\t“Partially regulated plant”\nmeans a milk plant not located in a regulated area but having Class I\ndistribution within such area. Commission regulations may exempt plants having\nsuch distribution or receipts in amounts less than the limits defined\ntherein.\t\t“Participating state” means a state which has become a\nparty to this compact by the enactment of concurring legislation.\t\t“Pool\nplant” means any milk plant located in a regulated\narea.\t\t“Region” means the territorial limits of the states which are\nparties to this compact.\t\t“Regulated area” means any area within the\nregion governed by and defined in regulations establishing a compact over-order\nprice or commission marketing order.\t\t“State dairy regulation” means\nany state regulation of dairy prices and associated assessments, whether by\nstatute, marketing order, or otherwise.\t\t\u00a7 3. Rules of construction.\n\na. This compact shall not be construed to displace existing federal milk\nmarketing orders or state dairy regulation in the region but to supplement them.\nIn the event some or all federal orders in the region are discontinued, the\ncompact shall be construed to provide the Commission the option to replace them\nwith one or more commission marketing orders pursuant to this compact.\n\nb. This compact shall be construed liberally in order to achieve the purposes\nand intent enunciated in § 1. It is the intent of this compact to establish\na basic structure by which the Commission may achieve those purposes through the\napplication, adaptation, and development of the regulatory techniques\nhistorically associated with milk marketing and to afford the Commission broad\nflexibility to devise regulatory mechanisms to achieve the purposes of this\ncompact. In accordance with this intent, the technical terms which are\nassociated with market order regulation and which have acquired commonly\nunderstood general meanings are not defined herein but the Commission may\nfurther define the terms used in this compact and develop additional concepts\nand define additional terms as it may find appropriate to achieve its purposes.\n\t\t\tARTICLE III. Commission Established.\t\t\t§ 4. Commission\nestablished.\t\t\tThere is hereby created a commission to administer the compact,\ncomposed of delegations from each state in the region. The Commission shall be\nknown as the Southern Dairy Compact Commission. A delegation shall include not\nless than three nor more than five persons. Each delegation shall include at\nleast one dairy farmer who is engaged in the production of milk at the time of\nappointment or reappointment, and one consumer representative. Delegation\nmembers shall be residents and voters of, and subject to such confirmation\nprocess as is provided for in, the appointing state. Delegation members shall\nserve no more than three consecutive terms with no single term of more than four\nyears, and be subject to removal for cause. In all other respects, delegation\nmembers shall serve in accordance with the laws of the state represented. The\ncompensation, if any, of the members of a state delegation shall be determined\nand paid by each state, but their expenses shall be paid by the\nCommission.\t\t\t§ 5. Voting requirements.\t\t\tAll actions taken by the\nCommission, except for the establishment or termination of an over-order price\nor commission marketing order, and the adoption, amendment, or rescission of the\nCommission’s bylaws, shall be by majority vote of the delegations present.\nEach state delegation shall be entitled to one vote in the conduct of the\nCommission’s affairs. Establishment or termination of an over-order price\nor commission marketing order shall require at least a two-thirds vote of the\ndelegations present. The establishment of a regulated area that covers all or\npart of a participating state shall require also the affirmative vote of that\nstate’s delegation. A majority of the delegations from the participating\nstates shall constitute a quorum for the conduct of the Commission’s\nbusiness.\t\t\t§ 6. Administration and management.\n\na. The Commission shall elect annually from among the members of the\nparticipating state delegations a chairperson, a vice-chairperson, and a\ntreasurer. The Commission shall appoint an executive director and fix his or her\nduties and compensation. The executive director shall serve at the pleasure of\nthe Commission, and, together with the treasurer, shall be bonded in an amount\ndetermined by the Commission. The Commission may establish through its bylaws an\nexecutive committee composed of one member elected by each delegation.\n\nb. The Commission shall adopt bylaws for the conduct of its business by a\ntwo-thirds vote and shall have the power by the same vote to amend and rescind\nthese bylaws. The Commission shall publish its bylaws in convenient form with\nthe appropriate agency or officer in each of the participating states. The\nbylaws shall provide for appropriate notice to the delegations of all Commission\nmeetings and hearings and of the business to be transacted at such meetings or\nhearings. Notice also shall be given to other agencies or officers of\nparticipating states as provided by the laws of those states.\n\nc. The Commission shall file an annual report with the Secretary of Agriculture\nof the United States, and with each of the participating states by submitting\ncopies to the Governor, both houses of the legislature, and the head of the\nstate department having responsibilities for agriculture.\n\nd. In addition to the powers and duties elsewhere prescribed in this compact,\nthe Commission may engage in all of the following:\n\n 1. Sue and be sued in any state or federal court.\n\n 2. Have a seal and alter the same at pleasure.\n\n 3. Acquire, hold, and dispose of real and personal property by gift, purchase,\n lease, license, or other similar manner, for its corporate purposes.\n\n 4. Borrow money and to issue notes, to provide for the rights of the holders\n thereof, and to pledge the revenue of the Commission as security therefor,\n subject to the provisions of § 18 of this compact.\n\n 5. Appoint such officers, agents, and employees as it may deem necessary,\n prescribe their powers, duties, and qualifications.\n\n 6. Create and abolish such offices, employments, and positions as it deems\n necessary for the purposes of the compact and provide for the removal, term,\n tenure, compensation, fringe benefits, pension, and retirement rights of its\n officers and employees.\n\n 7. Retain personal services on a contract basis.\n \t\t\t\t§ 7. Rule-making power.\t\t\t\tIn addition to the power to promulgate a\n compact over-order price or commission marketing orders as provided by this\n compact, the Commission is further empowered to make and enforce such\n additional rules and regulations as it deems necessary to implement any\n provisions of this compact, or to effectuate in any other respect the purposes\n of this compact.\t\t\t\tARTICLE IV. Powers of the Commission.\t\t\t\t§ 8. Powers\n to promote regulatory uniformity, simplicity, and interstate\n cooperation.\t\t\t\tThe Commission may:\n\n 1. Investigate or provide for investigations or research projects designed to\n review the existing laws and regulations of the participating states, to\n consider their administration and costs, and to measure their impact on the\n production and marketing of milk and their effects on the shipment of milk and\n milk products within the region.\n\n 2. Study and recommend to the participating states joint or cooperative\n programs for the administration of the dairy marketing laws and regulations\n and to prepare estimates of cost savings and benefits of such programs.\n\n 3. Encourage the harmonious relationships between the various elements in the\n industry for the solution of their material problems. Conduct symposia or\n conferences designed to improve industry relations, or a better understanding\n of problems.\n\n 4. Prepare and release periodic reports on activities and results of the\n Commission’s efforts to the participating states.\n\n 5. Review the existing marketing system for milk and milk products and\n recommend changes in the existing structure for assembly and distribution of\n milk which may assist, improve, or promote more efficient assembly and\n distribution of milk.\n\n 6. Investigate costs and charges for producing, hauling, handling, processing,\n distributing, selling, and for all other services, performed with respect to\n milk.\n\n 7. Examine current economic forces affecting producers, probable trends in\n production and consumption, the level of dairy farm prices in relation to\n costs, the financial conditions of dairy farmers, and the need for an\n emergency order to relieve critical conditions on dairy farms.\n \t\t\t\t§ 9. Equitable farm prices.\n\na. The powers granted in this section and § 10 shall apply only to the\nestablishment of a compact over-order price, so long as federal milk marketing\norders remain in effect in the region. In the event that any or all such orders\nare terminated, this article authorizes the Commission to establish one or more\ncommission marketing orders, as herein provided, in the region or parts thereof\nas defined in the order.\n\nb. A compact over-order price established pursuant to this section shall apply\nonly to Class I milk. Such compact over-order price shall not exceed one dollar\nand fifty cents ($1.50) per gallon at Atlanta, Georgia, however, this compact\nover-order price shall be adjusted upward or downward at other locations in the\nregion to reflect differences in minimum federal order prices. Beginning in\n1990, and using that year as a base, the foregoing one dollar and fifty cents\n($1.50) per gallon maximum shall be adjusted annually by the rate of change in\nthe Consumer Price Index as reported by the Bureau of Labor Statistics of the\nUnited States Department of Labor. For purposes of the pooling and equalization\nof an over-order price, the value of milk used in other use classifications\nshall be calculated at the appropriate class price established pursuant to the\napplicable federal order or state dairy regulation and the value of unregulated\nmilk shall be calculated in relation to the nearest prevailing class price in\naccordance with and subject to such adjustments as the Commission may prescribe\nin regulations.\n\nc. A commission marketing order shall apply to all classes and uses of milk.\n\nd. The Commission may establish a compact over-order price for milk to be paid\nby pool plants and partially regulated plants. The Commission also may establish\na compact over-order price to be paid by all other handlers receiving milk from\nproducers located in a regulated area. This price shall be established either as\na compact over-order price or by one or more commission marketing orders.\nWhenever such a price has been established by either type of regulation, the\nlegal obligation to pay such price shall be determined solely by the terms and\npurpose of the regulation without regard to the situs of the transfer of title,\npossession, or any other factors not related to the purposes of the regulation\nand this compact. Producer-handlers as defined in an applicable federal market\norder shall not be subject to a compact over-order price. The Commission shall\nprovide for similar treatment of producer-handlers under commission marketing\norders.\n\ne. In determining the price, the Commission shall consider the balance between\nproduction and consumption of milk and milk products in the regulated area, the\ncosts of production including, but not limited to, the price of feed, the cost\nof labor including the reasonable value of the producer’s own labor and\nmanagement, machinery expense and interest expense, the prevailing price for\nmilk outside the regulated area, the purchasing power of the public, and the\nprice necessary to yield a reasonable return to the producer and distributor.\n\nf. When establishing a compact over-order price, the Commission shall take such\nother action as is necessary and feasible to help ensure that the over-order\nprice does not cause or compensate producers so as to generate local production\nof milk in excess of those quantities necessary to assure consumers of an\nadequate supply for fluid purposes.\n\ng. The Commission shall whenever possible enter into agreements with state or\nfederal agencies for exchange of information or services for the purpose of\nreducing regulatory burden and cost of administering the compact. The Commission\nmay reimburse other agencies for the reasonable cost of providing these\nservices.\n\t\t\t\u00a7 10. Optional provisions for pricing order.\t\t\tRegulations establishing a\ncompact over-order price or a commission marketing order may contain, but shall\nnot be limited to, any of the following:\n\n 1. Provisions classifying milk in accordance with the form in which or purpose\n for which it is used, or creating a flat pricing program.\n\n 2. With respect to a commission marketing order only, provisions establishing\n or providing a method for establishing separate minimum prices for each use\n classification prescribed by the Commission, or a single minimum price for\n milk purchased from producers or associations of producers.\n\n 3. With respect to an over-order minimum price, provisions establishing or\n providing a method for establishing such minimum price for Class I milk.\n\n 4. Provisions for establishing either an over-order price or a commission\n marketing order may make use of any reasonable method for establishing such\n price or prices including flat pricing and formula pricing. Provision may also\n be made for location adjustments, zone differentials, and competitive credits\n with respect to regulated handlers who market outside the regulated area.\n\n 5. Provisions for the payment to all producers and associations of producers\n delivering milk to all handlers of uniform prices for all milk so delivered,\n irrespective of the uses made of such milk by the individual handler to whom\n it is delivered, or for the payment of producers delivering milk to the same\n handler of uniform prices for all milk delivered by them.\n \t\t\t\ta. With respect to regulations establishing a compact over-order price,\n the Commission may establish one equalization pool within the regulated area\n for the sole purpose of equalizing returns to producers throughout the\n regulated area.\t\t\t\tb. With respect to any commission marketing order, as\n defined in § 2, subdivision (3), which replaces one or more terminated\n federal orders or state dairy regulation, the marketing area of now separate\n state or federal orders shall not be merged without the affirmative consent of\n each state, voting through its delegation, which is partly or wholly included\n within any such new marketing area.\n\n 6. Provisions requiring persons who bring Class I milk into the regulated area\n to make compensatory payments with respect to all such milk to the extent\n necessary to equalize the cost of milk purchased by handlers subject to a\n compact over-order price or commission marketing order. No such provisions\n shall discriminate against milk producers outside the regulated area. The\n provisions for compensatory payments may require payment of the difference\n between the Class I price required to be paid for such milk in the state of\n production by a federal milk marketing order or state dairy regulation and the\n Class I price established by the compact over-order price or commission\n marketing order.\n\n 7. Provisions specially governing the pricing and pooling of milk handled by\n partially regulated plants.\n\n 8. Provisions requiring that the account of any person regulated under the\n compact over-order price shall be adjusted for any payments made to or\n received by such persons with respect to a producer settlement fund of any\n federal or state milk marketing order or other state dairy regulation within\n the regulated area.\n\n 9. Provision requiring the payment by handlers of an assessment to cover the\n costs of the administration and enforcement of such order pursuant to\n subsection (a) of § 18 of Article VII.\n\n 10. Provisions for reimbursement to participants of the Women, Infants and\n Children Special Supplemental Food Program of the United States Child\n Nutrition Act of 1966.\n\n 11. Other provisions and requirements as the Commission may find are necessary\n or appropriate to effectuate the purposes of this compact and to provide for\n the payment of fair and equitable minimum prices to producers.\n \t\t\t\tARTICLE V. Rule-Making Procedure.\t\t\t\t§ 11. Rule-making\n procedure.\t\t\t\tBefore promulgation of any regulations establishing a compact\n over-order price or commission marketing order, including any provision with\n respect to milk supply under subsection (f) of § 9, or amendment thereof,\n as provided in Article IV, the Commission shall conduct an informal\n rule-making proceeding to provide interested persons with an opportunity to\n present data and views. Such rule-making proceeding shall be governed by\n § 4 of the Federal Administrative Procedure Act, as amended (5 U.S.C.\n § 553). In addition, the Commission shall, to the extent practicable,\n publish notice of rule-making proceedings in the official register of each\n participating state. Before the initial adoption of regulations establishing a\n compact over-order price or a commission marketing order and thereafter before\n any amendment with regard to prices or assessments, the Commission shall hold\n a public hearing. The Commission may commence a rule-making proceeding on its\n own initiative or may in its sole discretion act upon the petition of any\n person including individual milk producers, any organization of milk producers\n or handlers, general farm organizations, consumer or public interest groups,\n and local, state or federal officials.\t\t\t\t§ 12. Findings and referendum.\n\na. In addition to the concise general statement of basis and purpose required by\n\u00a7 4(b) of the Federal Administrative Procedure Act, as amended (5 U.S.C. \u00a7 553\n(c)), the Commission shall make findings of fact with respect to:\n\n 1. Whether the public interest will be served by the establishment of minimum\n milk prices to dairy farmers under Article IV.\n\n 2. What level of prices will assure that producers receive a price sufficient\n to cover their costs of production and will elicit an adequate supply of milk\n for the inhabitants of the regulated area and for manufacturing purposes.\n\n 3. Whether the major provisions of the order, other than those fixing minimum\n milk prices, are in the public interest and are reasonably designed to achieve\n the purposes of the order.\n\n 4. Whether the terms of the proposed regional order or amendment are approved\n by producers as provided in § 13.\n \t\t\t\t§ 13. Producer referendum.\n\na. For the purpose of ascertaining whether the issuance or amendment of\nregulations establishing a compact over-order price or a commission marketing\norder, including any provision with respect to milk supply under subsection (f)\nof § 9, is approved by producers, the Commission shall conduct a referendum\namong producers. The referendum shall be held in a timely manner, as determined\nby regulation of the Commission. The terms and conditions of the proposed order\nor amendment shall be described by the Commission in the ballot used in the\nconduct of the referendum, but the nature, content, or extent of such\ndescription shall not be a basis for attacking the legality of the order or any\naction relating thereto.\n\nb. An order or amendment shall be deemed approved by producers if the Commission\ndetermines that it is approved by at least two-thirds of the voting producers\nwho, during a representative period determined by the Commission, have been\nengaged in the production of milk the price of which would be regulated under\nthe proposed order or amendment.\n\nc. For purposes of any referendum, the Commission shall consider the approval or\ndisapproval by any cooperative association of producers, qualified under the\nprovisions of the Act of Congress of February 18, 1922, as amended, known as the\nCapper-Volstead Act, bona fide engaged in marketing milk, or in rendering\nservices for or advancing the interests of producers of such commodity, as the\napproval or disapproval of the producers who are members or stockholders in, or\nunder contract with, such cooperative association of producers, except as\nprovided in subdivision (1) of this subsection and subject to the provisions of\nsubdivisions (2) through (5) of this subsection.\n\n 1. No cooperative that has been formed to act as a common marketing agency for\n both cooperatives and individual producers shall be qualified to block vote\n for either.\n\n 2. Any cooperative that is qualified to block vote shall, before submitting\n its approval or disapproval in any referendum, give prior written notice to\n each of its members as to whether and how it intends to cast its vote. The\n notice shall be given in a timely manner as established, and in the form\n prescribed, by the Commission.\n\n 3. Any producer may obtain a ballot from the Commission in order to register\n approval or disapproval of the proposed order.\n\n 4. A producer who is a member of a cooperative which has provided notice of\n its intent to approve or not to approve a proposed order, and who obtains a\n ballot and with such ballot expresses his or her approval or disapproval of\n the proposed order, shall notify the Commission as to the name of the\n cooperative of which he or she is a member, and the Commission shall remove\n such producer’s name from the list certified by such cooperative with\n its corporate vote.\n\n 5. In order to ensure that all milk producers are informed regarding a\n proposed order, the Commission shall notify all milk producers that an order\n is being considered and that each producer may register his or her approval or\n disapproval with the Commission either directly or through his or her\n cooperative.\n \t\t\t\t§ 14. Termination of over-order price or marketing order.\n\na. The Commission shall terminate any regulations establishing an over-order\nprice or commission marketing order issued under this Article whenever it finds\nthat such order or price obstructs or does not tend to effectuate the declared\npolicy of this compact.\n\nb. The Commission shall terminate any regulations establishing an over-order\nprice or a commission marketing order issued under this Article whenever it\nfinds that such termination is favored by a majority of the producers who,\nduring a representative period determined by the Commission, have been engaged\nin the production of milk, the price of which is regulated by such order; but\nsuch termination shall be effective only if announced on or before such date as\nmay be specified in such marketing agreement or order.\n\nc. The termination or suspension of any order or provision thereof, shall not be\nconsidered an order within the meaning of this Article and shall require no\nhearing, but shall comply with the requirements for informal rule making\nprescribed by § 4 of the Federal Administrative Procedure Act, as amended\n(5 U.S.C. § 553).\n\t\t\tARTICLE VI. Enforcement.\t\t\t§ 15. Records, reports, access to premises.\n\na. The Commission may by rule and regulation prescribe record keeping and\nreporting requirements for all regulated persons. For purposes of the\nadministration and enforcement of this compact, the Commission may examine the\nbooks and records of any regulated person relating to his or her milk business\nand for that purpose, the Commission’s properly designated officers,\nemployees, or agents shall have full access during normal business hours to the\npremises and records of all regulated persons.\n\nb. Information furnished to or acquired by the Commission officers, employees,\nor its agents pursuant to this section shall be confidential and not subject to\ndisclosure except to the extent that the Commission deems disclosure to be\nnecessary in any administrative or judicial proceeding involving the\nadministration or enforcement of this compact, an over-order price, a compact\nmarketing order, or other regulations of the Commission. The Commission may\nadopt rules further defining the confidentiality of information pursuant to this\nsection. Nothing in this section shall be deemed to prohibit (i) the issuance of\ngeneral statements based upon the reports of a number of handlers, which do not\nidentify the information furnished by any person, or (ii) the publication by\ndirection of the Commission of the name of any person violating any regulation\nof the Commission, together with a statement of the particular provisions\nviolated by such person.\n\nc. No officer, employee, or agent of the Commission shall intentionally disclose\ninformation, by inference or otherwise, that is made confidential pursuant to\nthis section. Any person violating the provisions of this section shall, upon\nconviction, be subject to a fine of not more than one thousand dollars ($1,000)\nor to imprisonment for not more than one year, or both, and shall be removed\nfrom office. The Commission shall refer any allegation of a violation of this\nsection to the appropriate state enforcement authority or United States\nAttorney.\n\t\t\t§ 16. Subpoena, hearings, and judicial review.\n\na. The Commission is hereby authorized and empowered by its members and its\nproperly designated officers to administer oaths and issue subpoenas throughout\nall signatory states to compel the attendance of witnesses and the giving of\ntestimony and the production of other evidence.\n\nb. Any handler subject to an order may file a written petition with the\nCommission stating that any order or any provision of any such order or any\nobligation imposed in connection therewith is not in accordance with law and\npraying for a modification thereof or to be exempted therefrom. The handler\nshall thereupon be given an opportunity for a hearing upon such petition, in\naccordance with regulations made by the Commission. After such hearing, the\nCommission shall make a ruling upon the prayer of such petition which shall be\nfinal, if in accordance with law.\n\nc. The district courts of the United States in any district in which the handler\nis an inhabitant, or has his or her principal place of business, are hereby\nvested with jurisdiction to review such ruling, provided a complaint for that\npurpose is filed within 30 days from the date of the entry of the ruling.\nService of process in these proceedings may be had upon the Commission by\ndelivering to it a copy of the complaint. If the court determines that the\nruling is not in accordance with law, it shall remand such proceedings to the\nCommission with directions either (i) to make such ruling as the court shall\ndetermine to be in accordance with law, or (ii) to take such further proceedings\nas, in its opinion, the law requires. The pendency of proceedings instituted\npursuant to this subdivision shall not impede, hinder, or delay the Commission\nfrom obtaining relief pursuant to § 17. Any proceedings brought pursuant to\n§ 17, except where brought by way of counterclaim in proceedings instituted\npursuant to this section, shall abate whenever a final decree has been rendered\nin proceedings between the same parties, and covering the same subject matter,\ninstituted pursuant to this section.\n\t\t\t§ 17. Enforcement with respect to handlers.\n\na. Any violation by a handler of the provisions of regulation establishing an\nover-order price or a commission marketing order, or other regulations adopted\npursuant to this compact shall:\n\n 1. Constitute a violation of the laws of each of the signatory states. Such\n violation shall render the violator subject to a civil penalty in an amount as\n may be prescribed by the laws of each of the participating states, recoverable\n in any state or federal court of competent jurisdiction. Each day such\n violation continues shall constitute a separate violation.\n\n 2. Constitute grounds for the revocation of license or permit to engage in the\n milk business under the applicable laws of the participating states.\n\nb. With respect to handlers, the Commission shall enforce the provisions of this\ncompact, regulations establishing an over-order price, a commission marketing\norder or other regulations adopted hereunder by:\n\n 1. Commencing an action for legal or equitable relief brought in the name of\n the Commission in any state or federal court of competent jurisdiction; or\n\n 2. Referral to the state agency for enforcement by judicial or administrative\n remedy with the agreement of the appropriate state agency of a participating\n state.\n\nc. With respect to handlers, the Commission may bring an action for injunction\nto enforce the provisions of this compact or the order or regulations adopted\nthereunder without being compelled to allege or prove that an adequate remedy of\nlaw does not exist.\n\t\t\tARTICLE VII. Finance.\t\t\t§ 18. Finance of start-up and regular costs.\n\na. To provide for its start-up costs, the Commission may borrow money pursuant\nto its general power under § 6, subsection (d), subdivision 4. In order to\nfinance the cost of administration and enforcement of this compact, including\npayback of start-up costs, the Commission may collect an assessment from each\nhandler who purchases milk from producers within the region. If imposed, this\nassessment shall be collected on a monthly basis for up to one year from the\ndate the Commission convenes, in an amount not to exceed $.015 per hundred\nweight of milk purchased from producers during the period of the assessment. The\ninitial assessment may apply to the projected purchases of handlers for the\ntwo-month period following the date the Commission convenes. In addition, if\nregulations establishing an over-order price or a compact marketing order are\nadopted, they may include an assessment for the specific purpose of their\nadministration. These regulations shall provide for establishment of a reserve\nfor the Commission’s ongoing operating expenses.\n\nb. The Commission shall not pledge the credit of any participating state or of\nthe United States. Notes issued by the Commission and all other financial\nobligations incurred by it, shall be its sole responsibility and no\nparticipating state or the United States shall be liable therefor.\n\t\t\t§ 19. Audit and accounts.\n\na. The Commission shall keep accurate accounts of all receipts and\ndisbursements, which shall be subject to the audit and accounting procedures\nestablished under its rules. In addition, all receipts and disbursements of\nfunds handled by the Commission shall be audited yearly by a qualified public\naccountant and the report of the audit shall be included in and become part of\nthe annual report of the Commission.\n\nb. The accounts of the Commission shall be open at any reasonable time for\ninspection by duly constituted officers of the participating states and by any\npersons authorized by the Commission.\n\nc. Nothing contained in this Article shall be construed to prevent commission\ncompliance with laws relating to audit or inspection of accounts by or on behalf\nof any participating state or of the United States.\n\t\t\tARTICLE VIII. Entry into Force; Additional Members and Withdrawal.\t\t\t§\n20. Entry into force; additional members.\t\t\tThe compact shall enter into force\neffective when enacted into law by any three states of the group of states\ncomposed of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland,\nMississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas,\nVirginia, and West Virginia and when the consent of Congress has been\nobtained.\t\t\t§ 21. Withdrawal from compact.\t\t\tAny participating state may\nwithdraw from this compact by enacting a statute repealing the same, but no such\nwithdrawal shall take effect until one year after notice in writing of the\nwithdrawal is given to the Commission and the governors of all the participating\nstates. No withdrawal shall affect any liability already incurred by or\nchargeable to a participating state prior to the time of such\nwithdrawal.\t\t\t§ 22. Severability.\t\t\tIf any part or provision of this\ncompact is adjudged invalid by any court, such judgment shall be confined in its\noperation to the part or provision directly involved in the controversy in which\nsuch judgment shall have been rendered and shall not affect or impair the\nvalidity of the remainder of this compact. In the event Congress consents to\nthis compact subject to conditions, said conditions shall not impair the\nvalidity of this compact when said conditions are accepted by three or more\ncompacting states. A compact state may accept the conditions of Congress by\nimplementation of this compact.\n\nHISTORY: 1998, c. 706, \u00a7 3.1-461.1; 2008, c. 860.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}